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What Are Short Term Loans & How Are They Used?
Did you know that approximately 12 million Americans use short-term loans (like and payday loans) each year? There’s no shortage of options when it comes to payday lending, and people use various types of short term loans for a wide range of applications. Here’s a quick rundown of payday borrowers and what they’re using their quick loans for.
Types of Short Term Loans & Statistics
- 5.5% of American adults have used a short term loan in the last 5 years.
- Almost 25% of payday loan borrowers prefer the convenience of easy online installment loans instead of going to a storefront.
- Generation X-ers are the largest demographic of payday loan borrowers
- 8% of high-income renters (with annual salaries of $40,000 to $100,000) have used payday loans.
- People use their cash advances most for:
- Buying vehicles
- Paying their bills
- Covering medical and nonmedical emergencies
- Paying tuition fees for higher education
- Consolidating debt
- 69% of borrowers use their payday loans to help manage recurring expenses (like credit card bills, mortgage, utilities, or food)
- 8% need cash advances to buy something special
- 16% use their short term loans for unexpected emergencies, medical or otherwise
How Could an Online Short Term Loan Help You?
Need cash quickly? It’s possible you can apply, receive a decision, and if approved, have the money deposited in your bank account the same day.*
When it comes to improving your financial health, it helps to have someone looking out for you. We created Thinkflow to provide you with helpful tools to get you back on track and help improve your financial standing. To learn more about short-term loans and improving your credit scores, you can always visit our Resource Center.
Source: The Pew Charitable Trusts, Safe Small-Dollar Loan Research Project, 2012 http://www.pewtrusts.org/en/research-and-analysis/reports/2012/07/19/who-borrows-where-they-borrow-and-why