Kentucky state map
A Guide to Payday and Title Loans in

Louisville, KY

Payday Lending in Louisville

Louisville, Kentucky’s largest city, is located along the Ohio River and is home to the Kentucky Derby, a famous horse race that takes place each May. Louisville is also known for its excellent cuisine, and visitors can tour Bourbon City’s many micro-distilleries.

But despite the city’s many attractions, U.S. News ranks Louisville at only #61 out of 125 cities in terms of the best places to live. This is largely due to the job market and quality of life. The poverty rate in Louisville is 17.7%. While this is slightly lower than the rate of 18.8% for all of Kentucky, both figures are higher than the national poverty rate of 12.7%.

Louisville residents’ credit card balances average $3,149, while their non-mortgage debt averages $28,678 and mortgage debt averages $98,644. These figures are lower than national averages, but higher than the averages for the state of Kentucky.

Poverty Rate in Louisville vs. Kentucky
Louisville
Kentucky
17.7%
18.8%
Poverty Rate

Payday Loans in Louisville

People with no credit history or bad credit in Louisville may not be served by traditional banks. Instead, many of these individuals may be tempted to seek payday loans in Louisville from predatory lenders.

In 2014, the laws for payday loans in Kentucky became more restrictive. State law caps loan amounts at $500, and allows borrowers to only take out two loans at a time. Payday lenders in Kentucky can only charge up to $15 for every $100 borrowed, but that still adds up to an average annual interest rate of 469%, according to Pew Charitable Trusts.

What is a Payday Loan?

A payday loan is a short-term loan that uses a borrower’s paycheck as collateral. A payday loan in Louisville may seem like an easy solution in a time of financial need, but these predatory loans carry high interest rates and fees that can make it difficult to get out of debt later on. For low-income individuals in Louisville who have difficulty covering their expenses, payday loans can quickly turn into a debt trap, as borrowers who struggle to pay back their initial loans take out more and more, and eventually become dependent on the loans to live.

Why Should you Avoid Payday Lenders in Louisville?

For people with bad credit in Louisville, payday loans may be a tempting option when emergencies arise. But for low-income families, a payday loan can be difficult to pay back on time, as families may struggle to cover their expenses along with the fees and interest associated with the loan. This is a problem because it often requires people to take out multiple loans. Thankfully, Kentucky law allows people to take out a maximum of two loans at a time. However, the average annual interest rate of 469% on payday loans in Kentucky still makes it difficult, and often impossible, for borrowers to get out of debt.

 

2016 Credit and Debt Statistics for Louisville vs. Kentucky vs. U.S.

 

Ave. Number of Credit Cards:

Ave. Balances on Credit Cards:

Ave. Number of Retail Cards:

 

Ave. Non-Mortgage Debt:

Ave. Mortgage Debt:

Ave. Retail Debt:

90 Plus Days Past Due Delinquency:

 

Louisville

1.65

$3,149

1.14

 

$28,678

$98,644

$659

16%

Kentucky

1.63

$3,044

1.11

 

$27,692

$91,458

$676

16%

United States

2.35

$5,551

1.51

 

$39,216

$196,014

$1,081

32%

Local Resources to Help Louisville Residents Avoid Predatory Lenders

Most of us have faced unexpected expenses at one time or another. Everyday expenses like food and housing can be difficult to cover on a strained income, let alone emergencies like illness and disability, accidents, addiction, or car/home repairs.

It’s understandable that many Louisville residents need financial assistance at times. Minimum wage in Kentucky is only $7.25, yet consumer spending in Louisville is higher than the rest of Kentucky and the rest of the nation. The average total spent per household for Louisville was $64,567 annually (based on 2016 figures). With a low minimum wage and high cost of living, many workers in Louisville will have difficulty covering their expenses.

Just over 10% of Jefferson County households lack someone with a bank account, and this figure is on the rise from previous years. Additionally, 17.7% of households are considered underbanked, which means these families may lack access to traditional loan services and credit cards. When unbanked or underbanked families need quick cash to cover unexpected expenses, they are left vulnerable to predatory lenders in Louisville. But residents should be informed of all other options available before seeking a payday loan.

Consumer Spending in Louisville vs. Kentucky vs. U.S.

 

Total per Household

Apparel & Services

Dining Out

Food Consumed at Home

Entertainment/Recreation

Health Care

Housing

Life and Other Insurance

Pensions and Social Security

Transportation

Louisville

$64,567

$1,944

$3,004

$4,846

$2,841

$5,208

$19,846

$410

$6,638

$7,900

Kentucky

$52,612

$1,572

$2,454

$4,126

$2,346

$4,445

$15,812

$334

$5,209

$6,804

United States

$57,311

$1,803

$3,154

$4,049

$2,913

$4,612

$18,886

$322

$6,509

$9,049

Food Assistance Resources in Louisville

Nearly 16% of Jefferson County residents are considered food insecure or at risk of becoming hungry, of which only 53% are eligible for Kentucky’s Supplemental Nutrition Assistance Program (SNAP). SNAP is an assistance program that helps reduce the cost of food for low-income families. To apply for assistance, click here.

For those who are not eligible for SNAP or who still struggle even with assistance, there are many food banks, churches, soup kitchens, and other organizations that provide food to families in need.

The following resources can help:

Dare to Care Food Bank

  • Address: 5803 Fern Valley Rd, Louisville, KY 40228
  • Phone: 502-966-3821

The Lord’s Kitchen Ministries

  • Address: 1811 Standard Ave, Louisville, KY 40210
  • Phone: 502-413-0198
Medical Debt in Jefferson County vs. Kentucky
Jefferson County
Kentucky
5.0%
6.0%
% Uninsured
28.0%
27.0%
% with Medical Debt in Collections
$786
$654
Median $ Medical Debt in Collections

Healthcare Resources in Louisville

Five percent of Jefferson County residents are uninsured, which is slightly lower than the state and national figures. The percentage of uninsured residents has been on the decline since Kentucky became one of the two southern states to expand Medicaid under the Affordable Care Act.

Still, 28% of Maricopa County residents have medical debt in collections. Even those with insurance may struggle to cover their medical costs, and when collection agencies call, families may be tempted to use payday loans in Louisville. Fortunately, there are other options available when healthcare issues arise.

If you are currently uninsured, visit Kentucky HEALTH to find out if you are eligible for Kentucky’s health and well-being program for low-income families. You can also visit one of these free health clinics:

Family Community Clinic Inc

  • Address: 1406 E Washington St, Louisville, KY 40206
  • Phone: 502-384-8444

Family Health Centers

  • Multiple locations

Rent Assistance in Louisville

As housing costs rise, many individuals struggle to pay rent or mortgage. Louisville residents spend even more on housing than the rest of Kentucky. The median monthly cost with a mortgage for Louisville residents is $1,193, and those without a mortgage still pay a median of $421. The median rent cost in Louisville is $748.

With nearly 18% of Louisville residents living in poverty, it’s difficult for many families to afford the high cost of housing. Families in need of emergency rent assistance or facing eviction can get help from The Neighborhood Place. To find a location near you, click here.

The following resources may also be helpful:

Volunteers of America – Eviction Prevention Program

  • Address: 1321 S Preston St, Louisville, KY 40202
  • Phone: 502-568-1438

St. Vincent De Paul Louisville – provides emergency financial assistance

  • Address: 1015-C South Preston St, Louisville, KY 40203
  • Phone: 502-584-2480

Metro United Wayprovides referrals for financial assistance

  • Address: 334 E Broadway, Louisville, KY 40202
  • Phone: 502-583-2821
Monthly Housing Costs as a Percentage of Household Income in Louisville
  • Less than $20,000:19.0%
  • $20,000 to $34,999:16.7%
  • $35,000 to $49,999:14.5%
  • $50,000 to $74,999:17.9%
  • $75,000 or more:29.2%
Louisville vs. Kentucky Median Housing Values and Monthly Costs

 

Median Housing Value

% of Housing Units with a Mortgage

Median Monthly Cost (w/ mortgage)

Median Monthly Cost (w/o mortgage)

Median Rent

Louisville

$143,100

66.9%

$1,193

$421

$748

Kentucky

$126,100

59.2%

$1,116

$343

$690

Works Cited