Viewing 1-5 of 6. Most recent listed first.

Next Page >>

How Households Expect to Cope in a Financial Emergency (Article/Opportunity and Ownership Facts)
Author(s): Lynette A. Rawlings, Kerstin Gentsch

How households cope with financial emergencies depends largely on the resources at their disposal. Differential access to good financial options affects how much households pay for credit in a time of need, which can vary substantially. Using data from the Making Connections Cross-Site Survey (2002–2004), we examine how households with incomes over $30,000 and those with incomes below $30,000 would respond in a financial emergency and find that in general, higher-income households were more likely to use conventional methods while lower-income households were more likely to use alternative (and often more expensive) methods to pay unexpected bills.

Posted: March 04, 2008

Availability: HTML | PDF

Use of the Formal and Informal Financial Sectors: Does Gender Matter? (Research Report)
Author(s): Signe-Mary McKernan, Mark M. Pitt, David Moskowitz

Access to transfers and credit, whether cash or in-kind, is a major source of poverty alleviation and income generation in many developing countries around the world. Women may especially benefit from transfers and credit in countries such as Bangladesh where they often have few work alternatives. In this paper, the authors descriptively examine the formal and informal financial sectors of rural Bangladesh, placing special emphasis on differences between men and women. Their analysis uses unique data on the credit and transfer behaviors of 1,800 households in rural Bangladesh.

Posted: January 15, 2005

Availability: HTML | PDF

Analysis of Alternative Financial Service Providers (Research Report)
Author(s): Noah Sawyer, Kenneth Temkin

Millions of households conduct financial transactions without ever using mainstream financial services. Many of these consumers often rely on alternative financial service providers--check-cashing outlets, payday lenders, pawnshops, rent-to-own stores, and auto title lenders. These alternative, nonbank financial service providers often carry high costs, limiting low-income families' ability to accumulate assets and establish a credit history. This report investigates the location of three types of alternative providers--check-cashing outlets, payday lenders, and pawnshops--in eight diverse demographic and regulatory environments. For each site, the study presents a demographic profile of alternative provider neighborhoods as well as areas that contain geographic "clusters" of alternative providers. It also assesses whether the regulatory environment affects the number and location patterns of financial service providers.

Posted: February 19, 2004

Availability: HTML | PDF

Empirical Evidence on the Determinants of Rent-to-Own Use and Purchase Behavior (Article)
Author(s): Signe-Mary McKernan, James M. Lacko, Manoj Hastak

This study uses logit and multinomial logit models and data from a nationwide random sample of rent-to-own (RTO) customers to investigate financial, demographic, regulatory, and other factors associated with consumer use of RTO transactions and the purchase of RTO merchandise. The analysis recognizes that RTO transactions can be used for either the purchase of merchandise or a temporary rental and models the determinants of use and purchase separately for each group of customers. The study concludes that income, access to credit, education, and race are significant determinants of whether consumers use RTO transactions with the intent to purchase. The study also finds some indication that state RTO laws may affect use and purchase, although this result is less robust. The determinants differ for consumers entering RTO transactions intending to purchase and intending a temporary rental, suggesting the industry serves two separate and distinct markets. The policy implications are discussed.

Posted: August 01, 2002

Availability: HTML

Customer Experience with Rent-to-Own Transactions (Article)
Author(s): James M. Lacko, Signe-Mary McKernan, Manoj Hastak

The authors examine the characteristics and experiences of rent-to-own customers using a nationwide survey of 532 customers and 11,575 non-customers. The authors find that most customers have low incomes and education levels, but most have a motor vehicle and some type of credit card or bank account; most customers use RTO transactions to purchase merchandise, not merely as short-term rentals; and most customers are satisfied with the transactions and are treated well if they are late making a payment, though some experience abusive collection practices. The authors discuss the implications of the findings for public policy.

Posted: May 01, 2002

Availability: HTML

Next Page >>