Cash advance and pawnshop use: the effect of enabling cash advance rollovers

Cash advance and pawnshop use: the effect of enabling cash advance rollovers

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Scores of US households depend on pay day loans and pawnshops for short-term credit. Cash advance rates of interest are since high as 25% per 2- to 4-week loans and people work with a check that is post-dated secure the mortgage. Pawnshop use can be acquired for anybody with security. This short article examines whether individuals utilizing payday advances in states where rollovers are permitted are more inclined to additionally utilize pawnshops along with payday advances. We realize that it is real for those who make not as much as $30,000, nonetheless it will not hold for all with greater amounts of earnings. There could be some complementary relationships between cash advance rollovers and pawnshops of these individuals that are lower-income. (more…)

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