Did you know that approximately 12 million Americans use short-term loans (like and payday loans) each year? There’s no shortage of options when it comes to payday lending, and people use online installment loans for a wide range of applications. Here’s a quick rundown of payday borrowers and what they’re using their quick loans for.
Payday Loans By the Numbers
- 5.5% of American adults have used a short term loan in the last 5 years.
- Generation X-ers are the largest demographic of payday loan borrowers
- 8% of high-income renters (with annual salaries of $40,000 to $100,000) have used payday loans.
- People use their cash advances most for:
Paying their bills
Covering medical and nonmedical emergencies
Paying tuition fees for higher education
- 69% of borrowers use their payday loans to help manage recurring expenses (like credit card bills, mortgage, utilities, or food)
- 8% need cash advances to buy something special
- 16% use their short term loans for unexpected emergencies, medical or otherwise
How Could a Short Term Loan Help You?
Need cash quickly? It’s possible you can apply, receive a decision, and if approved, have the money deposited in your bank account the same day.*
When it comes to improving your financial health, it helps to have someone looking out for you. We created Allay to provide you with helpful tools to get you back on track and help improve your financial standing. To learn more about short-term loans and improving your credit scores, you can always visit our Resource Center.