Payday lenders and premature mortality

Area of Science:

• Public Health
• Health Economics
• Sociology

Background:

• Growing access to expensive credit, such as payday loans, is a concern.
• Population health is worsening by certain metrics, with potential links to financial distress.

Purpose of the Study:

• To investigate the spatial relationship between payday lender storefronts and premature mortality rates in the United States.
• To determine if the local presence of payday lenders is associated with increased mortality risks.
• To explore the potential moderating role of state regulations.

Main Methods:

• Utilized county-level data on causes of death from the Centers for Disease Control and Prevention (CDC).
• Integrated data on payday lender locations across the United States from 2000 to 2017.
• Employed statistical methods to account for county socioeconomic and demographic factors.

Main Results:

• A significant association was found between the local presence of payday lenders and increased incidence risk of all-cause premature mortality.
• Specific causes of premature mortality were also found to be associated with payday lender proximity.
• The strength of these associations may be influenced by state-level regulatory environments.

Conclusions:

• The spatial distribution of payday lenders is correlated with higher premature mortality rates.
• Policy interventions, particularly state regulations on lending practices, may be crucial for mitigating adverse health outcomes.
• Further research into the mechanisms linking financial products and health disparities is warranted.