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CashAdvanceOnline.net has published a new article and colorful infographic on its website about what motivates Americans to use payday loans. It discovers that basic expenses are often the main reason.
BALTIMORE, October 23, 2013 /PRNewswire/ --
CashAdvanceOnline.net has published a new article on its website entitled "Why Do Americans Borrow Payday Loans?" The decision to write the article came after research was released by the Pew Charitable Trusts showing that, despite the intentions of many payday lenders, cash advance loans are being used to cover basic expenses.
As wages are frozen across many industry sectors within the U.S., the website believes that payday loan usage is becoming more widespread for everyday cost coverage, showing that this form of lending serves a crucial lending purpose.
A spokesperson for CashAdvanceOnline.net made the announcement about the article in the following statement that was released to the press:
"Many payday lenders advertise their products for consumers to borrow small loans for a number of weeks at a time in order to cover emergency and unforeseen expenses. Some of the common suggestions as to how payday loans can be used include covering unexpected bills, educational costs or sudden repairs on household appliances."
"However, as the eye-opening research from the Pew Charitable Trusts shows, payday loans are being used to cover basic expenses, such as food, utilities bills and gas. As many as 2/3 of consumers using cash advances are using payday loans for this purpose and our article highlights the most pertinent facts and numbers in order to help consumers to see that they are not alone for using cash advances in this way."
In addition to using cash advances for daily costs, the article shows that the average consumer uses payday loans for 18 days out of the month, and five months of the year. On the issue of what the research says regarding the financial state of the American public, the statement continued, "The fact that so many consumers are using cash advance loans to make the month regularly is a testimony to the importance this form of financing. Without payday loans, how can millions of Americans feed their families, run their cars to work or pay for their bills?"