Alabama Financial Snapshot
Many of the 4.9 million people living in Alabama experience financial difficulties on a daily basis.
About 16.9% of Alabama residents lived in poverty in 2018, and the 2018 median household income was $49,861.
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 percent of payday loan borrowers in the state take out multiple loans per year.
Consumer Protections in Alabama
Alabama borrowers can contact the: