Study: Most Borrowers use Payday Loans for Living Expenses

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00007603-study-most-borrowers-use-payday-loans-for/

The people in the advertisements for payday loans are always smiling. They have had a “cash emergency,” something like unexpected car repairs, and the loan is just what they needed to get them by until payday.

But the first full-year’s worth of data collected from the industry indicates the majority of borrowers in Oklahoma are using the loans to pay their living expenses, and may be caught in a debt trap they cannot escape, said David Reisdorph, research coordinator for Tulsa-based Community Action Project. CAP describes itself as an anti-poverty organization, promoting programs and policies that help low-income individuals become self-sufficient.

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