City moves to curb spread of payday loan outlets

[dbiz2]

2012 Pew Trust Study on Payday Lending in U.S.

27 % of people who apply for pay day loans earn over 80 k a year.That was the statistic on 1010 radio last night from a woman who wrote a book on finances.So,now all these "stupid" people earn over 80 k? You most likely know some of these people,they just wont admit they use payday loans.

As quoted in 2012 study by the Pew Trust:

"Most payday loan borrowers are white, female, and are 25 to 44 years old. However, after controlling for other characteristics, there are five groups that have higher odds of having used a payday loan: those without a four-year college degree; home renters; African Americans; those earning below $40,000 annually; and those who are separated or divorced. It is notable that, while lower income is associated with a higher likelihood of payday loan usage, other factors can be more predictive of payday borrowing than income. For example, low-income homeowners are less prone to usage than higher-income renters: 8 percent of renters earning $40,000 to $100,000 have used payday loans, compared with 6 percent of homeowners earning $15,000 up to $40,000."

I haven't used a payday loan in over 10 years. At that time, however, I fell into three of the five groupings with the higher odds: AA, earning below $40K, and divorced, with child support being my largest monthly payment (no sympathy requested on the child support. I adhere to the "you make them, you pay for them" philosophy). As my children "aged out," i.e., turned 18, the child support declined, and my net income increased.

The most I ever took for a payday loan was $500. I paid it off in a month, even if it meant touching my savings for the extra $100.

http://www.pewtrusts.org/~/media/legacy/uploadedfiles/pcs_assets/2012/pewpaydaylendingreportpdf.pdf

 

[Occasionally]

As quoted in 2012 study by the Pew Trust:

"Most payday loan borrowers are white, female, and are 25 to 44 years old. However, after controlling for other characteristics, there are five groups that have higher odds of having used a payday loan: those without a four-year college degree; home renters; African Americans; those earning below $40,000 annually; and those who are separated or divorced. It is notable that, while lower income is associated with a higher likelihood of payday loan usage, other factors can be more predictive of payday borrowing than income. For example, low-income homeowners are less prone to usage than higher-income renters: 8 percent of renters earning $40,000 to $100,000 have used payday loans, compared with 6 percent of homeowners earning $15,000 up to $40,000."

I can understand someone who is broke, divorced with monthly payments to make, or who makes little money using them...... to an extent. Everyone needs money to cover the basics.

I say that because money loan centres should be the LAST place you use. Never mind hassling or being embarrassed to ask friends and fam for money. If you have to ask for a loan from a company, use a bank. Overdraft your account, get a line of credit etc..... This should be the first choice. If they say get lost, then use a credit card even though it's stupid at probably 20+%. As a last recourse, a payday store.

However, I truly don't think a good portion of people even realize that. They just see those neon yellow signs driving down the street and go there.

So for people throwing their money away using these payday places even though they may have approved access to cheaper sources of loans, that's their problem. The world can't babysit you forever. Banks even mail you marketing brochures hoping you sign up with them. It's really right in your face.

It's like getting a car loan or mortgage. Do you sign up with the first place you see? Or do you scope things out and see which one has the best terms and rates? I scope things out.

Also, I would like to know (if there is such a statistical study), how many of these people using it, truly need it for every day necessities, or paying for kids, rent etc..... Compared to someone borrowing money so they can go the latest iphone or TV.

As for the other demographics where there's a chunk of people making good money, again that's their problem. Unless there is some kind of apocalyptic family issue that needs big money and no bank or credit card company will advance you money, nobody making up to $100,000 should be so broke they need to get payday loans. If someone is making $80-100k and needs to borrow money at astronomical interest rates and charges, there is something mighty weird going on.

If they do because they are too busy shopping at Yorkdale Mall buying shit all day, that's their problem. They should know better.

Unfortunately, none of us will know or can truly dissect the needy from the careless. Government is trying to crack down on it, but there will be some who still truly need it. If the government is so charitable, let's see them offer people who need cash zero/low interest loans. They won't because they know they don't want to get caught up with the hassle of loans and deadbeats. They have no problem helping you with small business loans, but they won't touch individual loans.

 

[Celticman]

They should ban them from immediate proximity to massage parlours LOL