In partnership with Higher Purpose Hub, we conducted five focus groups across the Mississippi Delta to better understand the impact of payday lending. Our research reveals that payday loans are not a short-term fix but a long-term problem:
- Payday loans are often the only financial option for many borrowers, particularly in underbanked communities.
- High interest rates (300% or more) create a cycle of debt that can take years to escape.
- Many borrowers do not fully understand the terms of their loans, including hidden fees and compounding interest.
- There is a strong need for financial education and alternative lending solutions that empower communities rather than exploit them.
Focus Groups
We engaged 44 participants from diverse backgrounds who shared their personal experiences with payday lending. The stories we collected reflect the financial and emotional toll these loans take on individuals and families. Some participants reported turning to payday loans for emergency expenses, while others found themselves trapped in an endless loop of borrowing to pay off previous loans.
Participants emphasized a lack of financial literacy, difficulty accessing traditional credit, and the stigma of asking friends or family for help. Many also described payday loans as an "easy fix" that quickly spiraled into an overwhelming financial burden.
Financial Access in Mississippi
Our research also highlights disparities in financial services across the state, particularly in low-income areas:
- 1,119 conventional banks 275 payday lenders across Mississippi, illustrating the limited access to traditional banking.
- The Mississippi Delta has a higher concentration of payday lenders than traditional banks, exacerbating financial insecurity in an already economically disadvantaged region.
- Check cashing services (198), title loans (33), and pawn shops (144) further contribute to financial instability, offering high-interest loans with little regulation.
- Census data highlights income and racial disparities in access to traditional banking services, leaving marginalized communities more vulnerable to predatory lenders.
Many borrowers turn to payday lenders because they lack the credit history or collateral required for bank loans.
Without financial literacy programs and better access to responsible lending, payday loans remain a primary—yet dangerous—option for those in financial distress.
In partnership with Higher Purpose Hub, we conducted five focus groups across the Mississippi Delta to better understand the impact of payday lending. Our research reveals that payday loans are not a short-term fix but a long-term problem:
- Payday loans are often the only financial option for many borrowers, particularly in underbanked communities.
- High interest rates (300% or more) create a cycle of debt that can take years to escape.
- Many borrowers do not fully understand the terms of their loans, including hidden fees and compounding interest.
- There is a strong need for financial education and alternative lending solutions that empower communities rather than exploit them.
Focus Groups
We engaged 44 participants from diverse backgrounds who shared their personal experiences with payday lending. The stories we collected reflect the financial and emotional toll these loans take on individuals and families. Some participants reported turning to payday loans for emergency expenses, while others found themselves trapped in an endless loop of borrowing to pay off previous loans.
Participants emphasized a lack of financial literacy, difficulty accessing traditional credit, and the stigma of asking friends or family for help. Many also described payday loans as an "easy fix" that quickly spiraled into an overwhelming financial burden.
Financial Access in Mississippi
Our research also highlights disparities in financial services across the state, particularly in low-income areas:
- 1,119 conventional banks 275 payday lenders across Mississippi, illustrating the limited access to traditional banking.
- The Mississippi Delta has a higher concentration of payday lenders than traditional banks, exacerbating financial insecurity in an already economically disadvantaged region.
- Check cashing services (198), title loans (33), and pawn shops (144) further contribute to financial instability, offering high-interest loans with little regulation.
- Census data highlights income and racial disparities in access to traditional banking services, leaving marginalized communities more vulnerable to predatory lenders.
Many borrowers turn to payday lenders because they lack the credit history or collateral required for bank loans.
Without financial literacy programs and better access to responsible lending, payday loans remain a primary—yet dangerous—option for those in financial distress.
In partnership with Higher Purpose Hub, we conducted five focus groups across the Mississippi Delta to better understand the impact of payday lending. Our research reveals that payday loans are not a short-term fix but a long-term problem:
- Payday loans are often the only financial option for many borrowers, particularly in underbanked communities.
- High interest rates (300% or more) create a cycle of debt that can take years to escape.
- Many borrowers do not fully understand the terms of their loans, including hidden fees and compounding interest.
- There is a strong need for financial education and alternative lending solutions that empower communities rather than exploit them.
Focus Groups
We engaged 44 participants from diverse backgrounds who shared their personal experiences with payday lending. The stories we collected reflect the financial and emotional toll these loans take on individuals and families. Some participants reported turning to payday loans for emergency expenses, while others found themselves trapped in an endless loop of borrowing to pay off previous loans.
Participants emphasized a lack of financial literacy, difficulty accessing traditional credit, and the stigma of asking friends or family for help. Many also described payday loans as an "easy fix" that quickly spiraled into an overwhelming financial burden.
Financial Access in Mississippi
Our research also highlights disparities in financial services across the state, particularly in low-income areas:
- 1,119 conventional banks 275 payday lenders across Mississippi, illustrating the limited access to traditional banking.
- The Mississippi Delta has a higher concentration of payday lenders than traditional banks, exacerbating financial insecurity in an already economically disadvantaged region.
- Check cashing services (198), title loans (33), and pawn shops (144) further contribute to financial instability, offering high-interest loans with little regulation.
- Census data highlights income and racial disparities in access to traditional banking services, leaving marginalized communities more vulnerable to predatory lenders.
Many borrowers turn to payday lenders because they lack the credit history or collateral required for bank loans.
Without financial literacy programs and better access to responsible lending, payday loans remain a primary—yet dangerous—option for those in financial distress.