Unveiling The Top City In North Dakota Where Pawnshop Loans Thrive

We all know times are tough, and for many in North Dakota, rising grocery and fuel costs are stretching budgets to their limits. Sometimes, when money gets tight, people turn to short-term loans, like payday or pawnshop loans, to get by.

But are these loans a good idea? BadCredit.org set out to find where short-term loans are used most and what people think about them. Big cities like Miami, Las Vegas, and Atlanta topped the list of places where people rely on short-term loans the most.

In a previous article, we told you about the pawnshop loan hotspot for Montana. But what about North Dakota? Fargo made the rankings, coming in at 110th among cities where people lean on short-term loans like these to help make ends meet.

When North Dakotans need fast cash, payday loans are the most popular choice. Pawnshop loans are the second go-to option, followed by borrowing from friends or family. The least popular? Car title loans—likely because of the risk of losing your vehicle if you can’t pay it back.

Interestingly, 40% of North Dakotans who’ve used short-term loans said they’ve gone to a pawnshop to raise cash. The main reasons for turning to short-term loans? Nearly half said unexpected expenses, like car repairs or medical bills, pushed them to borrow. Others used loans to cover essentials like rent or groceries (37%), while some (19%) needed the money to handle financial emergencies or job loss.

Speed is a huge factor when choosing a loan—70% of respondents said it was “extremely important” to get their hands on cash quickly. Of course, the downside is the high-interest rates, with 41% of people saying it’s the biggest reason they hesitate.

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Other worries include repayment terms that feel unfair (27%), the risk of losing collateral like a car or valuables (17%), and loans that drag on too long (9%).

So, which loans do North Dakotans think are the most reasonable? Payday loans took the top spot, with 44% saying they liked being able to repay the loan when their paycheck arrived. Pawnshop loans came in second (32%), followed by car title loans (24%).

And how do short-term loans impact communities? Almost half of those surveyed (45%) said the impact is mostly positive, which shows that while these loans might not be ideal, they can be a lifeline when times get tough.