TEMPE, AZ -- More Americans are shunning banks and turning to payday loan businesses for cash, according to a recent report.
The Census Bureau survey shows one in every four American households use check cashers, payday lenders or pawn brokers to get cash quick.
The survey is the first in-depth look at the issue.
It showed that many of those turning away from banks are minorities.
More than half, 53 percent of African Americans and 43 percent of Hispanics, are now using alternative financial services, buying money orders and cashing checks straight out.
A manager at Allied Cash Advance in Tempe said he's seen an increase in business since the economy fell.
"There are certain times of the year we see a jump, the holidays are one of them," he said.
Some say the payday loan businesses are faster, even though they aren't cheaper.
"It doesn't surprise me. People don't want to jump through all the hoops a bank makes you do with paperwork," said, Manuel Cartajena, a barber working beside Allied Cash Advance.
Patricia, who asked that we not use her last name, said she uses the check cashers for money orders.
"Most of my buying and paying of things is with credit card, so I don't need a checking account but occasionally I'm sending out money so the money orders are nice and they're doing them for free," she said.
The survey showed nearly 30 million American's don't have a bank account, and are choosing to buy money orders and cash checks, which means many are not establishing a credit history.
The Census Bureau survey shows one in every four American households use check cashers, payday lenders or pawn brokers to get cash quick.
The survey is the first in-depth look at the issue.
It showed that many of those turning away from banks are minorities.
More than half, 53 percent of African Americans and 43 percent of Hispanics, are now using alternative financial services, buying money orders and cashing checks straight out.
A manager at Allied Cash Advance in Tempe said he's seen an increase in business since the economy fell.
"There are certain times of the year we see a jump, the holidays are one of them," he said.
Some say the payday loan businesses are faster, even though they aren't cheaper.
"It doesn't surprise me. People don't want to jump through all the hoops a bank makes you do with paperwork," said, Manuel Cartajena, a barber working beside Allied Cash Advance.
Patricia, who asked that we not use her last name, said she uses the check cashers for money orders.
"Most of my buying and paying of things is with credit card, so I don't need a checking account but occasionally I'm sending out money so the money orders are nice and they're doing them for free," she said.
The survey showed nearly 30 million American's don't have a bank account, and are choosing to buy money orders and cash checks, which means many are not establishing a credit history.
"Because of the way times are now, people's pay are being cut, hours are being cut, they're losing their jobs, they need quick cash" Cartajena said.
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