Why Do Youth in Michigan Choose Online Payday Loans?
Young people have become much more likely to take out online payday loans in Michigan. The share of young people among payday lending borrowers has grown to 41%. What explains this growth and what are the advantages of payday loans for the young people?
A payday loan is a popular loan product among young people in Michigan. Young people are one of the most vulnerable segments to the financial crisis. The reasons are obvious – many young people do not have savings and a constant high income (stable job).
The crisis explains the increase in the volume of loans issued by Americans under the age of 30. There is less money in your pocket, but requests and some mandatory payments have remained the same – someone needs to pay for their studies, someone is going on vacation, has chosen new branded things, dreams of a top smartphone, etc.
The need for money always persists, and the payday lenders helps to realize it.
Why do young people choose payday loans?
In addition to the lack of savings and permanent income, there are other reasons:
- distrust of banks and lack of access to loans – banks are tightening requirements, now it is difficult to issue a traditional loan even for working adults;
- the absence of credit history – it is almost impossible to take out a loan from a bank without credit score;
- the desire to get money quickly – payday loans are ideal for this; there is no need for large amounts – making small loans for short periods.
As a result, a microloan with its most loyal terms remains one of the only credit products available to young people, hence the growing indicators.
Loans via the Internet – convenient, simple and accessible for everyone
A payday loan is a very convenient option that is used not only by young people (loans in payday lending options were more often issued by clients older than 30-39 years old). In addition to accessibility, the popularity of this loan product is explained by other equally important factors.
Less amount – easier to return
A traditional payday loan involves making a small amount in the region of $2,500. The client enters into a contract and receives money without burdening himself with serious financial circumstances, he understands that such an amount can always be repaid quickly, for example, immediately after the salary.
In addition, the terms are minimal, so the overpayment is not so big. Interest is accrued on the actual days of using the loan – the earlier you return, the less you overpay, so if you return the payday loan in 5-7 days, the overpayment will be quite insignificant.
Other advantages of payday loans online Michigan
- No special formalities – clients do not require income certificates and guarantors, all that is needed is reaching the age of 18, ID, phone and Internet access.
- Fast deadlines – borrowers receive money within max 24 business hours, just a couple of clicks – and the funds will be deposited to your bank card. No bank will offer such loyal terms.
- Different ways to receive money – transfer to a card or cash withdrawal at the lending office.
- Solving financial issues without leaving home – applying for a payday loan online.
- Transparent terms – MFIs operate in accordance with the law. The client can calculate the loan parameters himself using an online calculator on the company’s website.
- These and other advantages, combined with low financial obligations, make short-term loans one of the most attractive credit products for young people (and not only).