1/3 of MA Borrowers Took Payday Loans for the First Time in 2021
Verizon experts analyzed the microfinance market in 2021. According to the research, a third of MA residents (29%) started taking out payday loans in March-June this year. The overwhelming majority (90%) borrowed up to $1,000 at a time. Almost 60% of borrowers admitted that it became more difficult to pay off debts during the pandemic, and more than half (52%) used borrowed funds to buy essential goods. The survey involved 1,015 people from Massachusetts who have used the services of MFIs in the last year.