#United States #Greenville #Advance America #short-term loans #paycheck gap

Understanding Short-Term Borrowers: Insights from a Recent Survey

A recent survey conducted by Advance America reveals an illuminating perspective on short-term borrowers in the U.S. This study highlights that many of these borrowers are employed adults struggling with the timing of their paychecks in relation to their financial obligations. In January 2026, the survey surveyed 541 adults across the United States, providing a clear view of the challenges faced by borrowers today.

Who Are the Borrowers?

The survey's findings indicate that an astonishing 87% of participants had utilized at least one form of short-term borrowing within the past six months. Among these borrowers, 76.2% were employed in either full-time or part-time jobs, while 78.6% took on the primary responsibility of managing their household finances. This suggests that the profile of a short-term borrower is not as unsupported as some might assume; instead, they are often employed individuals making conscious financial decisions.

Jessica Rustin, CEO of Advance America, emphasized the importance of this research in affirming the company's understanding of its customers. She stated, "Our customers are working adults who manage their finances thoughtfully. They choose short-term borrowing because it's a practical, predictable solution - and that's exactly what Advance America strives to provide."

The Paycheck Timing Gap

The issue at the heart of this situation is referred to as the “paycheck gap,” a phenomenon that highlights the disconnect between when bills are due and when paychecks are received. The survey aligns with broader economic concerns, where U.S. inflation reached 3.4% year-over-year by August 2026, while average hourly earnings saw a decline of 0.3%. A separate CNBC Affordability Survey indicated that 63% of Americans are living paycheck to paycheck, with 61% of respondents noting that their paycheck schedules do not align with their expenses.

A significant portion of the survey's participants, approximately 80%, fell within the 35 to 54 age range. Many of these respondents are dealing with mortgages and the added responsibility of supporting families amid rising living costs. Alarmingly, 44% reported incurring late fees, interest charges, or overdraft fees due to the wait for their next paycheck. This highlights the urgency and dire consequences that can arise from this timing gap.

Strategies for Bridging the Gap

To cope with the financial pressures stemming from the paycheck gap, the survey explored various methods employed by respondents to access cash before their next pay date:

• - 64.5% utilized payday loans or small-dollar loans.
• - 29.6% relied on cash advance apps.
• - 21.6% borrowed from friends or family.
• - 17.6% took cash advances from a debit or credit card.
• - 16.8% incurred a bank overdraft fee.

The data offered by Advance America shows that those opting for payday or installment loans appreciate the transparency involved in these products. They find comfort in knowing exactly when their payments are due and how much they are responsible for repaying, reinforcing the notion that short-term borrowing can offer a predictable solution to an unpredictable cash flow.

About the Survey

This extensive study was conducted online, with respondents recruited through Advance America's digital channels. The results reflect a diverse demographic across different states, particularly in regions such as Florida and Texas where Advance America operates extensively.

Who is Advance America?

Advance America is a licensed financial institution that provides accessible loan options both online and in physical branches across 23 states. Since its inception in 1997, the company has equipped millions of families with tools to manage their financial challenges efficiently. Their model stresses simple and fast borrowing services without judgments or hidden traps.

For more information about how Advance America can help navigate these financial moments, visit Advance America.