Journal Article

Pandemic Relief Has Aided Low-Income Individuals: Evidence from Alternative Financial Services

Abstract: Although low-income individuals are more likely to have lost their jobs due to the COVID-19 pandemic, pandemic relief efforts may have helped prevent them from experiencing increased financial distress. Consumer interest in payday loans, title loans, and pawn loans have all declined since the onset of the pandemic, suggesting low-income individuals have been able to access credit and meet basic financial needs without the use of these alternative financial services.

Keywords: Alternative Financial Services (AFS); Payday; Pawnshops; Title Lenders; Pandemic; CARES Act; COVID-19;

JEL Classification: E4; G23;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2020-12-30

Pages: 4