Who is it that uses payday loans?
The payday industry currently advertises these loans as both easy and quick ways to get cash, and the industry targets lower income, working consumers, including military personnel, welfare-to-work women, and any others who have little or even no savings and those who live paycheck to paycheck. Many of the cash-strapped borrowers who now get payday loans are unfortunately not able to repay the entire payday loan within the two weeks, and they then end up rolling over their payday loan and therefore pay the renewal fees multiple times. They then get trapped on this “debt treadmill”, and the borrowers will then end up typically paying much more in fees than the amount they originally borrowed. Although many payday loans are marketed as one-time assistance to help pay bills, including utility bills, during a financial emergency, a 2003 study completed by the Center for Responsible Lending has found that over 90% of all payday loans are now made to borrowers who take out five or more payda
