AUSTIN, Texas, Oct. 11, 2021 /PRNewswire-PRWeb/ -- More than 12 million Americans take out a payday loan each year, and a study by DebtHammer.org set out to find the top major cities in the U.S. with payday lending problems.
To mark National Savings Day on Oct. 12, DebtHammer weighed data from U.S. cities with populations of 500,000 or more to compare issues. Results of "Cities with the Worst Payday Lender Problems" found that the following cities top the list:
1. Memphis, Tenn.
2, Jackson, Miss.
3. Las Vegas
4. Baton Rouge, La.
5. New Orleans
6. Nashville, Tenn.
7. Chattanooga, Tenn.
8. Dallas-Fort Worth
9. Houston
10. Birmingham, Ala.
Some of the factors used by DebtHammer to determine rankings for each city include:
-- The number of brick-and-mortar payday loan storefronts.
-- The number of complaints to the Consumer Financial Protection Bureau per 100,000 residents.
-- Google Trends search volume for "payday loans."
Three key takeaways from the study:
1. Payday loans are a bigger problem in the South: Six states — Tennessee, Mississippi, Nevada, Louisiana, Texas and Mississippi — are represented in the Top 10. Five of those are in the South — Nevada is the outlier. The likely reason: a high number of unbanked residents. All of the states on the list except Nevada have an unbanked population of 7.1% or higher.
2. Betting on borrowers: All of the top five cities are located fewer than 50 miles from a casino. Gambling is a $110 billion industry in the U.S., and lenders are often available onsite. As many as 23 million Americans go into debt because of gambling, with the average loss estimated at around $55,000.
3. In Tennessee, you can place a bet and get a loan at the same spot: Tennessee is the only state with three cities in the Top 10 and one unique factor: It's possible for Tennessee bettors to get a loan and place a bet under the same roof.
Read the full report at https://debthammer.org/cities-with-the-worst-payday-lending-problems-study/.
DebtHammer is an industry leader in the business of fighting to get Americans out of debt.
Please email [email protected] for more information, or if you would like to schedule a phone or video call with DebtHammer's CEO, Jake Hill.
Feel free to embed any of the visuals included in the report on your website, or to use or edit the raw files as needed. Full data sets are available upon request.
Media Contact
Rebecca Stumpf, debthammer.org, +1 214-542-2502, [email protected]
SOURCE debthammer.org
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