Alabama

Alabama

alabama state map

Payday Loans in Alabama

At a Glance
Alabama
alabama state flag
  • Nickname: The Heart of Dixie
  • Population: 4.89 million
  • Capital: Montgomery
  • Website: www.alabama.gov

Alabama is a state that exudes Southern charm and has a rich history of music and literature. It’s where many people come to enjoy all different types of soul and southern BBQ and experience a land of history, culture, and scenery.

But many of the 4.89 million people living here experience financial difficulties on a daily basis. About 16.9% of Alabama residents lived in poverty in 2018, and the 2018 median household income ($49,861) was over $12,000 less than the national average.

 

Average Credit Card Debt and Median Household Income in Alabama vs. the U.S.
Alabama
US
$5,672
$6,028
Average Credit Card Debt (Q1 2019)
$49,861
$61,937
Median Household Income (2018)

Payday Loans in Alabama

A 2019 report by the Alabama Appleseed Center for Law & Justice and Alabama Arise indicates that “there are more payday and title lenders in Alabama than hospitals, high schools, mov­ie theaters, and county courthouses com­bined.”

Payday loans are a kind of short-term loan. Because payday lenders don’t typically require a credit check, people with bad credit who can’t access more traditional lines of financing may take out a payday loan when faced with a financial emergency.

More than 1.7 million payday loans were taken out in Alabama in 2018, and more than 200,000 Alabamians take out a payday loan every year. The report also notes that Alabama borrowers have paid over $100 million in payday loan fees that did not decrease the principal amount that they owed. Approximately 85% of payday loan borrowers in the state take out multiple loans per year, and 11,428 payday loan borrowers in Alabama took out 24 or more loans in 2018. In 2015, Alabama residents took out more than two million payday loans, with an average of eight loans per borrower. The average loan amount was $322, and the average borrower paid a fee of $56 per loan.

Payday Loan Statistics for Borrowers in Alabama vs. Nationally
Alabama
US
$322
$392
Average Loan Amount

Guides to Payday Loans in Alabama Cities

Check out these payday loan guides for the following cities in Alabama…

Birmingham | Huntsville | Mobile | Montgomery