More millennials are switching to pay day loans and pawn shops for necessary money — techniques that may offer relief that is immediate but usually lead to deeper financial obligation.
That’s based on a new research on millennials and economic literacy by the Global Financial Literacy Excellence Center at George Washington University. The analysis features simply how much millennials have a problem with individual finance: of these surveyed, 42 per cent had utilized an alternative solution service that is financial a broad term which includes automobile name loans, income tax reimbursement advances and rent-to-own items, into the 5 years ahead of the research. Pay day loans and pawnshops led the list with 34 per cent of participants reporting having utilized them.
Shannon Schuyler, a responsibility that is corporate of PricewaterhouseCoopers, which sponsored the report, explained that while many findings when you look at the research, just like the abuse of bank cards, had been understandable and maybe also expected, “it had been harder to actually comprehend the elevated increase in such things as pay day loans and pawn shop use.”
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