International Survey: Americans Most Likely to Have No Spare Cash, Apply For Fast Loans
By Desmond CarlislePayday Loan Writer
In a recent survey, a Dublin, Ireland research institution, Research and Markets, found that U.S. consumers were the most likely to have "no spare cash." This would suggest that Americans, more than any other nationality, are likely to need a payday loan when encountering an unexpected expense.
In fact, Americans in the same survey were asked how they spend the spare cash they do have, 37 percent said they use it to pay off credit card debt and/or other loans. While it is unclear how much this lack of cash is due to spending or paying off previous loans, the fact remains that Americans are the most likely to need to borrow for future needs.
While it appears that the market for short term payday loans continues to increase, they are not consumers' only option. The interest rates on the credit cards may or may not be better than those on unsecured loans, but they may have rewards programs or other benefits.
Similarly, home equity loans have lower interest rates than unsecured loans. Bankrate.com cited a 7.99 percent APR, on average, for a $30,000 loan in September 2005, while the Federal Reserve cites over 12 percent for a 24-month personal loan.
In a 2001 survey of payday loan customers, 66 percent used the small, online cash loans (which are usually limited to $500) because of unexpected expenses and/or temporary reduction in income.
The report clearly identifies the principal factors driving or curtailing growth in unsecured loans. Exclusive research reveals consumer attitudes and behavior toward loans, broken down by demographics. Six years of sales data provide a factual and impartial presentation of the market, which continues to make the news with great regularity.
