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In an American context the families who will use a payday loan are disproportionately either of Black or Hispanic descent, recent immigrants, and/or under-educated. These individuals are least able to secure normal, lower-interest-rate forms of credit.
Explanation: Most people that use payday lenders or cash advance stores are typically trying to solve immediate financial requirements. These requirements could be anything from covering living expenses such as rent or groceries, to unexpected costs like medical bills or car repairs.
Who uses payday loans? Those who are underbanked or dont have access to a traditional bank account. Recent immigrants, undereducated individuals and those of Black or Hispanic descent. Young adults who took out student loans. Lower-income individuals. Parents, especially those who are divorced or separated.
ing to Lisa Servon and Joe Coleman, what need are payday lenders filling ? immediate access to funds among individuals whose income is irregular, low.
People use payday lenders when they need more money than they have in their checking account. Payday lenders loan you money until you get your next paycheck. They charge you a fee for this service.
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They typically have considered demographic factors such as income, race, and education level as determinants of the locations of AFSPs.
Payday lenders rely on repeat customers, often low-income minorities, charging exorbitant compounding interest for cash advances. They seldom offer borrowers workable repayment plans, and in many states, operate with few regulations.

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