Previously stated payday loans have long been indcated as a fast and simple way to make up for shortfall of cash between paychecks. Nowadays, the financial market is filled with about 23,000 payday lenders. They operate in many states including Georgia, Alabama, Delaware, etc. One of the benefits payday lenders offer is that they target different layers of society, they tend to serve vulnerable populations. They are people without a college degree, renters, African Americans, individuals with annual earning less than $40,000. One more class of Georgian is separated or divorced men or women. And increasingly, many of these payday loan borrowers are young people.
As statistics say only about 6% of adult Americans have applied for payday loans in the past 5 years. The majority of those borrowers issuing payday loans Georgia age 18 to 24. It becomes possible to fill the financial gaps with the help of payday loans According to the survey conducted in 2018, nearly 40% of 18- to 21-year-olds and 51% of Millennials have issued a payday loan to cover some obligations.
Nowadays, lenders prefer to cooperate with young people. It helps increase the likelihood that they will use their services. Young people are the most likely to use apps for their handling their finances: A 2017 survey found that 48% of respondents aged 18 to 24 and 35% of respondents aged 25 to 34 use mobile banking apps once a week or even more frequent. They apply for payday loans online using special referral services. It helps issue extra funds in the shortest possible time span.
Young people aged 18-30 issue payday loans to provide a basic standard of living. The economists acknowledged that high rental prices and lack of income growth are forcing more and more people to take out loans to make ends meet. There has been a clear shift in the wealth and income structure of the younger generation, and this is leading to more indebtedness among youth. The problem reflects lower levels of real income, lower levels of asset ownership.
Young people want to work harder and strive for financial independence, but as prices rise and wages remain low, the problem is exacerbated.
According to the financial experts, it is necessary to teach financial literacy from the very childhood. This will allow the child to grow up to be successful and financially secure. Young people who were told about loans and repayment mechanisms refused to take even those loans that were related to the income of the “family” and could help the players create extra savings later.
People aged 18-25 who applied for a payday loan in Georgia, for example, and repaid the debt on time will begin to form a high-quality credit history. Considering that young people are taking their first steps in the financial market and their compliance with payment discipline in relation to small online loans will help form a financial culture and will allow them to make the right more serious financial decisions later.