Payday loans are used all over the country every day. A study shows that women seem to be more likely to use a payday loan more than a man is. The Pew Charitable Trust report is the study that put forth the statement that women use payday loans more than men.
It is estimated that $7.2 billion dollars are lent as payday loans every year. New information suggests that women are out pacing men when it comes to getting a payday lender. The Pew Charitable Trust links the increase in women using payday lending to the hit women took financially due to the recession.
Another report from the Colorado state government estimates that 52.4 percent of the people who obtain payday loans in their state are women. This is consistent with the report put out by the Pew Charitable Trust. It seems as though it does not matter where in the country you are more women are getting payday loans than men are.
Why is this? There are so many different reasons that can be given it would be hard to give one answer for that question. Some say that it is because during the economic decline women were hit harder than men were, leaving more women in need of help. Some may say that there are more single mothers than there are single fathers and that could be one reason.
Another potential reason could be that more women are having financial emergencies than men do. This is hard to say for sure as there are many different scenarios that could qualify for an emergency, and because most payday loans are not used for emergencies. This could be one part of the reason more women are using payday loans than men, but not the whole reason.
Single mothers may have a part to play in this statistic as well. There are always unexpected expenses popping up with children. If you live in a one income household it may be difficult to take on these expenses when they get sprung on you, and let’s face it not all children are good about letting you know something right away. They could come to you one day and say that they need money in two days for a field trip, if it is just simply not in the budget, the mother does not have that kind of money left what should she do? A payday loan is one option. Single mothers may also be another part of the statistic but definitely not the whole reason for it.
The Pew Charitable Trust report that has been released is showing that with the statistics that they have gathered that women are more likely to use payday loans than men are. This statistic is supported by reports coming out from others such as state governments. As with many other payday loan trends this may not change any time soon. The economy may play a part in it, but only time will tell what will happen.
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