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Payday Loan Myths - Part 1

Myth: Payday loan lenders take advantage of the less-fortunate, young and minorities.

Truth: Payday loan critics have been successful in recent years at getting the American public to swallow this gross lie that cash advance lenders target the lower class. When in truth, most payday loan borrowers come from the heart of America’s middle class. They represent the stereotypical, hard-working adult, who simply may not have a financial safety net when unexpected expenditures arise.

The facts speak for themselves.*

-The majority of cash advance customers earn between $25,000 and $50,000 annually.
-94% have a high school diploma or better. 54% have some college education or degree.
-ALL payday loan borrowers have steady incomes and active checking accounts - which are required to take out a loan in the first place.
-42% own their own home.
-The majority are married and have children in their homes.

As always, you have to be suspicious of what you read. In truth, payday loans are a helpful, and often necessary tool, to help hard-working Americans deal with day-to-day issues.

*Source: The Credit Research Center, McDonough School of Business, Georgetown University, Gregory Elliehausen and Edward C. Lawrence. Payday Advance Credit in America: An Analysis of Customer Demand. April 2001.
*Source: www.cfsa.net

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