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Abstract

This study uses data from the National Financial Capability Study (NFCS) to examine the short-term financing usage of North Carolina and South Carolina (NCSC) residents compared to those in other states. The following short-term financing services are analyzed: Auto title loans, payday loans, tax refund advances, pawn shops, and rent-to-own stores. The key findings reveal that NCSC residents, compared to residents of other states, tend to more frequently utilize pawn shops and rent-to-own stores, and less frequently utilize payday loans. No statistically significant differences were observed between NCSC residents and residents of other states for the usage of auto title loans and tax refund advances. Implications for regional financial literacy education and policy are discussed, including the varying prohibitions and limitations on different forms of predatory loans.

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