Americans take payday loans from microfinance institutions in order to buy gifts or organize their leisure time. Experts found that clients of such institutions often spend money on holidays and entertainment. They account for 10% of the total number of MFI clients. The share of payday loans for visiting cinema, concerts and excursions was also stable – 0.5% in 2021, as in the previous year.

The most popular entertainment purposes of payday loans were gifts. Their share was approximately 5.6% of the total number of online loans in 2021. It decreased slightly compared to 2020, when it reached 6.4%. However, it is interesting that the share of payday loans for gifts to beloved women, which were taken by male borrowers, on the contrary, increased. In 2020 it was 1%, and in 2021 it was 1.2%.

Americans borrowed 2.2% of payday loans in 2021 for holidays and vacations. True, due to the pandemic and the closure of borders with the most popular tourist countries, the share of such loans was significantly lower than a year earlier. Then it was 4.3%, experts reported.

Gifts account for 5.6% of payday loans in Athens GA. The share of men who sent borrowed funds for gifts to their chosen ones has increased since last year. Consumers usually apply for a loan via the Internet. Borrower eligibility requirements have minor differences across the country. To get accepted for a payday loan, you should be usually be aged at least 18, be a US citizen, and have and a source of income. Money is transferred to the borrower’s bank account within a few hours or instantly. To get basic information about payday loans in your city, you can use popular online portals like https://www.georgia-ssbci.org. The platform helps potential borrowers assess lenders’ ratings and read user reviews.

Nothing has changed in 2021

People also spent money on organizing events and buying jewelry. In 0.5% of cases, Americans took payday loans to purchase cinema or concert tickets. Demand for online loans to buy video games grew.

At the same time, Americans did not postpone wedding celebrations due to the pandemic. Traditionally, loans for these purposes are taken by about 1% of MFI clients. 2021 was no exception. The most common reason to borrow money for a wedding is to buy gold rings.

The share of loans for visiting cinema, concerts and excursions was also stable – 0.5% in 2021, as in the previous year. The fastest-growing segment was payday loans for video games: in 2020 their share was quite insignificant – less than 0.1%, but last year it reached 0.4% of the total number of payday loans, experts reported.

The company analyzed over 100 thousand payday loans that people took throughout the USA in 2020-2021.