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Why are an increasing number of people using high-cost financial services such as pawnshop loans, payday...

Why are an increasing number of people using high-cost financial services such as pawnshop loans, payday loans, and rent-to-own programs

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Answer #1

Increasing number of people are using high cost financial services primarily because of the convenience it provides. The pawnshop, payday loans and rent to own programs are easy to get credit from. They provide easy and fast funds. Also they do not delve much into your credit history, loan scores or outstanding loans. Funds can also be obtained against personal assets such as jewellery and gold.

These options are more suitable when the amount required is small which can be paid back quickly. Also if people are unemployed they have no other options.

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