Every year, millions of American consumers use small-dollar credit (SDC) products for quick access to cash. Yet, these products—payday loans, pawn loans, direct deposit advance loans, auto title loans, and non-bank installment loans—often come with high fees or interest rates and can lead consumers into a cycle of repeat usage and mounting debt. This study seeks to elucidate the reasons why so many consumers rely upon these potentially dangerous products and to glean what can be learned from their experiences to promote the development of high-quality credit solutions.
This study covers the following angles of the SDC Consumer: who they are, how they decide to use an SDC product, how they fare once they have purchased a product, and what they think about the products they use.
Rob Levy, Manager, Innovation and Research, guided participants through the research and took questions at the end of the webinar. Rachel Schneider, Vice President, Innovation, Research, and Policy, moderated.