An article in the IndyStar claims that more middle class families are using payday loans. I will agree that more people are using payday loans, but it’s always been middle class. Middle class is the 80% of people.
I believe this to be the misconception about payday loans is that they prey on the poor. Payday lenders love high income earners. Many of their borrowers make great money, but they just can’t manage it correctly.
Payday lenders rely on low unemployment, so the economy has hit many of their customers.
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Research shows payday advance customers to be middle-income, educated, working families, more than half earning between $25,000 and $50,000 annually. 58% have attended college, and one in five have a bachelor’s degree.