African-Americans, Renters, Divorcees Likely to Use Payday Loans

A new study shows who is taking out the short-term loans

In many cities, neon "payday loan" signs are ubiquitous in storefront windows and might go unnoticed by most passersby. But a new survey should make more people take notice of who's using those loans, how much they're borrowing, and the costs that can come with quick cash.

Ten percent of renters have used a payday loan, compared to 4 percent of homeowners. Lower-income Americans are, perhaps unsurprisingly, more likely to take out the loans as well, with 11 percent of people making between $15,000 and $25,000 having used a payday loan, with the proportion decreasing further up the income ladder. Twelve percent of African-Americans have taken out payday loans, more than twice the figure for whites (4 percent), and twice the figure for Hispanics and other races or ethnicities (both at 6 percent).

The study also finds an increased likelihood for people who are parents, disabled, and separated or divorced.