With unemployment at a record high and the CARES Act expiring without additional funding, a record number of Americans are experiencing financial difficulties related to the Coronavirus pandemic, leading to a surge in payday loans. These types of loans are often called payday loans, and they’re typically the only type of loan available to Americans with lower incomes.
In this analysis, LendUp reviews the data on the reasons why Americans turn to payday loans and how it varies by age, income and geographic location.
For the most part Americans use payday loans for essential expenses rather than entertainment or paying back other debt. With many Americans financially struggling because of the pandemic and the expiration of government stimulus, one might expect that this struggle to pay expenses may become more intense.As part of our loan application process, we ask borrowers to state the reason they are seeking a loan. For this analysis, LendUP reviewed loans from 2017 to 2020 to see the most common reasons. The chart below shows the most common reasons given, split by percentage of LendUp loan recipients:
Outside of the catchall bucket of “Other”, the most common reason for getting a payday loan is to cover car expenses. For most Americans, a car is essential for getting to work and unexpected car troubles can jeopardize one’s employment as well as disrupt everyday life. After that, family & child-related expenses is the second most common reason for a payday loan.
More discretionary expenses like travel and entertainment make up just 6.6% of payday loans combined. Just 2.3% of payday loans are used to repay other loans, a practice that can leave borrowers with revolving debt that can be difficult to escape. Healthcare expenses make up 4.4% of payday loans (please note that in our survey methodology of loan recipients healthcare can also include veterinary expenses).
How do the reasons for getting a payday loan vary by one’s income? The chart below shows the percentage of loans by reason for each income group of LendUp loan recipients:
Higher-income recipients (earning over $110K per year) are more likely to get loans for healthcare expenses, but least likely for car expenses. Lower-income (earning less than $50K per year) recipients are most likely to get loans for repaying another loan and least likely to use a loan for healthcare expenses. Across all income groups, the use of payday loans for discretionary expenses is very low and the lowest income group is the least likely to use a payday loan for travel.
Next, let’s look how the reason for getting a payday loan varies by age. The following chart shows percentage of payday loans chosen by reason for each age cohort:
Young people (under age 25) are three times more likely than older people (age 55+) to use a payday loan for entertainment. Young people are also much more likely to use payday loans for travel or repaying other loans. Not surprisingly, those in the middle age cohorts are most likely to spend payday loans on expenses related to children and family. Older payday loan recipients are most likely to have to use the funds for healthcare-related expenses or car troubles.
Lastly, is there any geographical difference in the uses of payday loans? The final chart shows the breakdown of loan reason in the thirteen states LendUp has distributed loans.
Minnesota borrowers are most likely to use a payday loan for car expenses. California and Wyoming are most likely to use loans for entertainment. Illinois recipients are most likely to use the funds for family and child-related expenses. Wyoming residents are most likely to need a payday loan for healthcare. Oregon borrowers are most likely to use payday loans to repay other loans and Texas borrowers are most likely to use payday loans for travel.
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With unprecedented economic uncertainty, many Americans have lost their jobs and still need to pay their bills and unexpected expenses. In this analysis, LendUp has shown that by and large, most payday loan recipients use the funds for essential expenses, though younger recipients are most likely to use the debt for things like travel, entertainment or servicing other loans. For the most part, however, people get payday loans to cover expenses that need to be paid urgently.
US Intelligence Agencies Say Iran, Russia Tried To Interfere In US ElectionTyler DurdenWed, 10/21/2020 — 20:40
A major last-minute news conference by top intelligence officials, including no less than Director of National Intelligence John Ratcliffe, has unveiled a bombshell assessment of US intelligence that Iran and Russia are in very specific waysactively trying to “influence opinion” regarding the presidential election.
DNI Ratcliffe during the special press briefing saidthe two US rivals have “taken specific actions to influence public opinion” regarding the election, describing that “these actions are desperate attempts by desperate adversaries.”
Demonstrating the presumed ‘high level’ nature of the alleged threat, Ratcliffe was joined in the press concerence by FBI Director Christopher Wray, Assistant Attorney General for National Security John C. Demers and Department of Homeland Security Cybersecurity and Infrastructure Security Agency (CISA) Director Christopher C. Krebs.
It apparently is beyond some mere Facebook or social media posts as we’ve heard in the past specifically alleged against Russian intelligence, but instead involves hacked voter registration information as well as ‘spoofed’ emails sent to Democrats which were apparently intended to damage Trump:
“We have confirmed that some voter registration information has been obtained by Iran, and separately by Russia,” Director of National Intelligence John Ratcliffe said in a press conference Wednesday evening. “This data can be used by foreign actors to attempt to convey misinformation,” he said.
He assured the public that US agencies did not “allow these efforts to have their intended effect” while underscoring that the Islamic Republic is seeking to damage the Trump campaign. If true, no doubt this is due to Trump’s ‘maximum pressure’ campaign which has choked the Iranian economy and isolated it on the world stage.
Ratcliffe then says Iran has been inciting social unrest and trying to damage Trump, despite WaPo reporting that Iran was targeting *Democrats* and threatening them if they didn’t vote for Trump. https://t.co/Fl1V37PmWw
By suggesting the group had gained access to privileged data, and also possibly penetrated electronic systems to detect how people were voting, the emails seemed designed to create the appearance of an election breach, said cybersecurity researchers. Such a move may serve to undermine confidence in the integrity of the democratic process without posing a genuine risk to the election, these researchers said.
The issue of the “threatening emails” sent to registered Democrats is perhaps the most bizarre angle, as Fox reviews:
The news conference was held as Democratic voters in at least four battleground states, including Florida and Pennsylvania, have received threatening emails, falsely purporting to be from the far-right group Proud Boys, that warned “we will come after you” if the recipients didn’t vote for President Donald Trump.
The voter-intimidation operation apparently used email addresses obtained from state voter registration lists, which include party affiliation and home addresses and can include email addresses and phone numbers. Those addresses were then used in an apparently widespread targeted spamming operation. The senders claimed they would know which candidate the recipient was voting for in the Nov. 3 election, for which early voting is ongoing.
DNI Ratcliffe said specifically on this point that “…we have already seen Iran sending spoofed emails designed to intimidate voters, incite social unrest, and damage President Trump. You may have seen some reporting on this in the last 24 hours or you may have even been one of the recipients of those emails.”
“Iran is distributing other content to include a video that implies that individuals could cast fraudulent ballots, even from overseas. This video and any claims about such allegedly fraudulent ballots are not true,” he added.
Governments around the world are using the ongoing pandemic to crack down on online dissent according to a human rights watchdog.
Washington-based Freedom House said dozens of countries have cited CV as a means “to justify expanded surveillance powers and the deployment of new technologies that were once seen as too intrusive.”They added that it marks the 10th consecutive annual decline in internet freedom, Barron’s reported.
The expansion of technological systems is enabling governments’ social control, according to the report.
“The pandemic is accelerating society’s reliance on digital technologies at a time when the internet is becoming less and less free,” said Michael Abramowitz, president of the nonprofit group.
“Without adequate safeguards for privacy and the rule of law, these technologies can be easily repurposed for political repression.”
China was singled out in the report noting, Chinese authorities “combined low– and high-tech tools not only to manage the outbreak of the coronavirus but also to deter internet users from sharing information from independent sources and challenging the official narrative.”
The report stated this shows a growing trend toward Chinese-style “digital authoritarianism” globally and a “splintering” of the internet as each government imposes its own regulations for citizens.
Freedom House said that of the estimated 3.8 billion people using the internet, just 20 percent live in countries with free internet, 32 percent in countries “partly free,” while 35 percent were in places where online activities are not free. The remainder live in countries that weren’t among the 65 assessed.
The report cited declines in countries where authorities have imposed internet shutdowns including Myanmar, Kyrgyzstan, and India, and in Rwanda for its use of “sophisticated spyware to monitor and intimidate exiled dissidents.”
Activist Post has previously reported that countries were using the pandemic to shutdown online dissent back in May of this year.Expressing that governments around the world were using fake news to hide behind their online censorship efforts.
Hungaryis one of the countries that began arresting citizens for allegedly spreading fake news related to the CV pandemic as ordered by Prime Minister Viktor Orban.
Hungary isn’t the only country that is using the CV crisis to push draconian laws on its citizens. Activist Post previouslyreported early on during the CV outbreak that two individuals were arrested under Thailand’s new “Anti-Fake News Center” for spreading false information about the coronavirus. Malaysia also issued four arrests of its citizens for spreading rumors and “disinformation,” accordingto a report by Hong Kong’s South China Morning Post. Those “suspects” included a tutor, two pharmacy assistants, and a university student whom if found guilty will face upwards to a $12,000 fine and up to 1 year in prison if convicted.
Then there is China, which arrested8 people who were charged with spreading rumors about a virus before the coronavirus was publicly known. Beyond that, China recently highlighted what can be done with such a law by censoring a media outlet Caijing, which is one of the most reputable outlets in the country. In that article, the authors claimed that China significantly underreported both cases and deaths, especially among the elderly. (archive)(translation)
Another country, Singapore, on April 1st proposed a law to combat online fake news. Under the draft law, those who spread online falsehoods with a malicious intent to harm public interest could face jail terms of up to 10 years,Reuters reported.
Activist Post previously highlighted that the CV pandemic would be used as a Trojan horse to take away our rights and be used to push increased digital surveillance via our smartphones.But that’s not all, it also serves a means for other facial recognition technology to be more frequently used. Top10VPN continues to monitor the increase of the police state and decrease of our digital and physical rights noting the following figures.
120 contact tracing apps are available in 71 countries
45 apps now use Google and Apple’s API
The U.S. has 23 apps, more than any other country in the world
Digital Tracking Measures:
60 digital tracking measures have been introduced in 38 countries
Telecom providers have shared user data in 20 countries
Physical Surveillance Initiatives:
43 physical surveillance measures have been adopted in 27 countries
Drones have been used in 22 countries to help enforce lockdowns
Europe introduced more surveillance measures than any other region
As Activist Post previouslywrote while discussing the increase of a police surveillance state, these measures being put into place now will likely remain long after the pandemic has stopped and the virus has run its course. That’s the everlasting effect that COVID-19 will have on our society. The coronavirus may very well be a legitimate health concern for all of us around the world. But it’s the government’s response that should worry us all more in the long run.
I know you all thought it was me just messing up the website, Nope this has been happening for years to people’s houses if they are not Israeli and even some that are! The people of the world just keep letting them do it. See for yourself, most folk here don’t even care to comment! My mother use to say “The world is going to hell in a handbag!”
Well Mom, you anit seen nothing yet!
Normally I would just pull the video. But, people need to see that Youtube is part of the major media when it come to anything that matters, However, and also links follow, it not gone…
Israeli House Demolition Policy Against Palestinians Explained
The video that YouTube blocked was way to much truth for youtube’s