Quick Hit: How Much Do You Know about Payday Lending?

Pew has a fascinating new report out on payday lending with valuable accompanying infographics and interactive tools. The report,Who Borrows, Where They Borrow, and Why, looks at the demographics, motivations, and financial needs of the estimated 12 million payday loan borrowers who spend a combined $7.4 billion annually on payday loans.

An interactive map of the U.S. shows the state by state regulatory framework for payday lending. Take the short quiz below to get a feel for the data Pew has compiled and click over to the full report to learn more.

As I’ve written before, payday lending is not inherently a good or a bad phenomenon. What is needed is a nuanced look at how and why these loan exist, the role they play in the financial product landscape, the regulatory challenges they pose, the consumer needs they meet and the problems that arise from their use. Pew’s report is a timely and important contribution to this conversation.