Aftereffect of payday advances on missed re re payments, standard balances and creditworthiness

. Pre-payday loan . Post-payday loan .
. (6–12 months) . (0–6 months) . (0–6 months) . (6–12 months) .
Panel (A): Missed payments
All credit –0.00 –0.01 0.14 *** 0.41 ***
(0.01) (0.01) (0.01) (0.03)
All non-payday credit –0.00 –0.01 –0.01 0.31 ***
(0.01) (0.01) (0.01) (0.02)
Panel (B): standard balances
Default balance –0.04 –9.97 4.48 116.39 ***
(7.35) (11.65) (18.41) (30.04)
Delinquent balance –8.12 –10.85 29.82 * 42.18 **
(7.08) (8.39) (13.07) (14.71)
Non-payday standard stability as –0.03 –0.04 –0.04 ** 0.07 ***
percent total balances (0.04) (0.06) (0.01) (0.02)
Non-payday delinquent stability as –0.01 –0.03 0.02 * 0.03 ***
percent total balances (0.01) (0.04) (0.01) (0.01)
Panel (C): Other results account status that is worst –0.01 –0.01 0.26 *** 1.11 ***
(0.06) (0.07) (0.03) (0.06)
Worsening credit 0.03 –0.04 0.08 0.42 ***
(0.08) (0.14) (0.25) (0.10)
Exceed overdraft limit –0.05 –0.06 0.12 *** 0.13 ***
(0.06) (0.07) (0.01) (0.01)
improvement in credit rating –25.67 ***
(0.98)
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Almost all of Clark County’s pay day loan stores clustered in ZIP codes around Nellis AFB

It’s been speculated that cash advance shops have certain company target: low-income, minority areas along with other at-risk teams.

The cycle of financial obligation frequently developed by pay day loans for individuals who already struggle financially happens to be a problem, but so far, no body has mapped down what that appears like in Clark County. Justin Gardner, creator and CEO of Las Vegas-based Innovative Research and Analysis LLC, made a decision to take a better look.

“Payday lenders surround all of the valley that is east Paradise area,” said Gardner, a doctorate degree prospect at UNLV’s class of Public Policy and Leadership. “While there are numerous regarding the borders of these areas, most of them have been in the thoroughfare connection places where there was a greater earnings of traffic.”

The majority of payday loan stores — 47 — are clustered around the 89101 ZIP code out of 443 storefronts in Clark County . ZIP codes 89121 and 89104 follow with 28 storefronts each, and 89109 and 89102 have 25 each, based on Gardner. Plus »