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Assessing the Welfare Impacts of this Payday Loan business in the us

Assessing the Welfare Impacts of this Payday Loan business in the us

Payday loans—small short-term loans with a high interest levels that become due during the time of the borrower’s next paycheck—are a typical type of lending to people who have low incomes in the usa. Do borrowers taking out fully these loans make logical choices, or do they borrow significantly more than they anticipate or want to into the long term? Researchers work with IPA and a big payday loan provider to conduct an assessment to higher perceive consumers’ decision-making with regard to pay day loans.

Policy problem

Payday loans—short-term loans with a high interest due during the time of the borrower’s next paycheck—are a form that is common of to people with low incomes in the usa.