Just How Do Payday Advances Affect Borrowers? Proof through the U.K. Market

Just How Do Payday Advances Affect Borrowers? Proof through the U.K. Market Abstract Payday advances are controversial high-cost, short-term borrowing products, prohibited in lots of U.S. states. But debates surrounding their advantageous assets to consumers carry on. We evaluate the consequences of pay day loans on customers by utilizing a unique information set including 99% of loans authorized in britain more than a two-year duration matched to credit files. Making use of a regression discontinuity research design, our outcomes show [...]

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