| Who are the customers opting for a payday loan? | | | | people who opt for these loans. But studies conducted |
| What is the average customer profile of payday loan | | | | throughout the States show that people from all walks |
| cash advance? | | | | of life consider payday loan cash advance as an |
| Payday loans are loans of a small amount, taken for a | | | | affordable option to meet their financial needs. |
| short duration of time. Payday loans are generally | | | | The US Census report of 2000 show that 22% of the |
| meant to be paid off on the next payday. Payday | | | | surveyed payday loan borrowers hold a bachelor's |
| lenders loan out thousands of dollars every week to | | | | degree from college. More than two-thirds of the |
| people who are in dire need of money. The | | | | people surveyed reported an annual income of a |
| Community Financial Service Association of America, | | | | minimum $25,555 and has a savings account. Also, |
| payday loan cash advance industry extends to about | | | | 51% of the surveyed population had a retirement |
| $25 billion. | | | | savings plan. |
| Payday lending is often regarded as something | | | | Viewing the industry statement, it seems that the |
| predatory and it is of the common belief that payday | | | | payday cash advance customer has more than |
| customers are being used as fodder by the money | | | | average level of education than the general US |
| hungry payday lenders. However, the various | | | | population. |
| researches undertaken throughout the years | | | | A typical payday loan customer is between 25 to 40 |
| contradict the view that payday loans are predatory | | | | years of age and has an annual income between |
| and the borrower is always being preyed upon. In fact, | | | | $25,000 and $50,000. Also people from all walks of life, |
| recent studies have shown borrowers preferring | | | | including teachers, civil servants and corporate |
| payday loans to other loan alternatives. | | | | employees considers payday loan as an efficient |
| The huge Annual Percentage Rate (APR), in the range | | | | solution to the short term financial emergencies. |
| of 391% and higher often makes it intriguing as to the | | | | |