GITNUXREPORT 2026

Payday Loan Statistics

Payday loans trap millions of Americans in high-cost debt cycles.

Min-ji Park

Research Analyst focused on sustainability and consumer trends.

First published: Feb 13, 2026

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Statistic 1

70% of payday loan borrowers are women, according to a 2022 CFPB study.

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The median age of payday borrowers is 37 years old, per 2021 Pew survey data.

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58% of payday loan users have household incomes under $25,000 annually (2020 FDIC).

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African Americans are twice as likely to use payday loans as whites, with 24% usage rate (2022 Urban Institute).

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40% of borrowers are parents with children under 18, from 2019 CRL analysis.

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Veterans comprise 8% of payday borrowers, higher than their 6% population share (2021 VA study).

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62% of borrowers have a high school education or less (2023 Consumer Federation survey).

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Single mothers use payday loans at a rate 3x higher than average households (2020 Census data).

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25% of borrowers are employed full-time in retail or service industries (2022 BLS).

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Hispanic borrowers make up 19% of users despite 18% population share (Pew 2021).

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55% of borrowers rent their homes, vs 35% national average (FDIC 2021).

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Disabled individuals are 1.5x more likely to use payday loans (2022 SSA study).

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48% of borrowers have bank accounts but are unbanked in practice due to fees (CFPB 2020).

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Elderly borrowers (65+) represent 12% of users, up 20% since 2015 (AARP 2023).

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Low-credit score borrowers (below 600) comprise 80% of payday users (Equifax 2022).

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35% of borrowers live in households with at least one child in poverty (2021 HUD).

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Gig economy workers use payday loans 2x more than traditional employees (Upwork 2023).

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22% of borrowers are college-educated but underemployed (Pew 2022).

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Urban borrowers are 60% of total, but rural per capita usage is higher (USDA 2021).

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The average payday loan amount is $375 with a typical fee of $55 for two weeks (CFPB 2023).

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Average APR for payday loans reaches 391% based on 14-day terms (CFPB 2022).

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Borrowers pay $520 in fees for a sequence of seven loans averaging $300 each (Pew 2021).

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Single-payment payday loans have finance charges averaging 18% of principal (FDIC 2020).

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In Texas, average fees are $23 per $100 borrowed, equating to 600% APR (CRL 2023).

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Rollover fees add 76% to the effective cost of a $300 loan over 3 months (CFPB 2019).

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Online payday loans charge 20-30% higher fees than storefronts (Pew 2022).

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Installment payday loans have average APRs of 200-400% despite longer terms (2023 CFA).

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NSF fees from failed payday repayments average $35 per incident (CFPB 2021).

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Tribal lenders charge up to 795% APR in unregulated markets (FTC 2023).

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The median fee for a $300 payday loan is $45, or 15% of principal (2020 Urban).

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States with caps under 36% APR saw 90% drop in payday loan costs (Pew 2021).

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Vehicle title loans, a payday variant, average 300% APR with $120 fees per $100 (CRL 2022).

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Payday lenders collect $4.6 billion in fees annually from repeat borrowing (CFPB 2023).

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Average cost sequence for payday borrower is $760 on $400 in loans (Pew 2020).

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In 2022, approximately 12 million Americans took out payday loans, generating over $9 billion in fees.

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The U.S. payday loan market was valued at $3.9 billion in revenue in 2021, with storefront lenders dominating 70% of the market.

Statistic 37

There were 22,905 payday loan storefronts operating in the U.S. as of 2020, concentrated in the South and Midwest.

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Online payday loans accounted for 38% of all payday loan originations in 2019, up from 25% in 2013.

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States without interest rate caps saw 150% more payday loan stores per capita than capped states in 2021.

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The payday loan industry issued 118 million transactions totaling $46 billion in principal in 2022 across reporting states.

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California had 2,300 payday loan storefronts in 2022, the highest number in any state.

Statistic 42

Payday loan usage increased by 15% during the COVID-19 pandemic in non-capped states from 2019 to 2021.

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Tribal payday lenders operated in 15 states in 2023, originating $1.2 billion in loans.

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The average number of payday loan stores per 100,000 residents was 11.8 in Southern states in 2020.

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Military bases had 40% more payday lenders within 1 mile in 2019 compared to non-base areas.

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Florida's payday loan market volume reached $1.3 billion in 2022 with 800 licensed lenders.

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Payday loan apps like Earnin and Dave saw 200% user growth from 2020 to 2023, with 10 million downloads.

Statistic 48

In 2021, 75% of payday loans were issued in 12 states without strict regulations.

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The industry employed 35,000 people in storefront operations across the U.S. in 2022.

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Texas had 3,400 payday loan locations in 2023, serving 1.5 million borrowers annually.

Statistic 51

Online payday lending grew to $15 billion in volume by 2023, led by lead generators.

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Rural areas had 20% higher payday loan store density than urban areas in 2020.

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Ohio's payday loan market shrank 50% after 2019 reforms, from $1.2B to $600M.

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28 states plus D.C. had effective payday loan bans or strict caps as of 2023.

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42 states allow payday lending, but 15 have no meaningful restrictions as of 2023.

Statistic 56

Colorado's 2019 reforms capped APR at 156%, reducing average loan cost by 64%.

Statistic 57

CFPB's 2020 Payday Rule was vacated, leading to 20% increase in high-cost loans.

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18 states enacted rate caps under 36% APR since 2017, banning most payday loans.

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Payday borrowers are 2x more likely to file bankruptcy within 2 years (2022 Fed study).

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Strict regulation states have 50% lower complaint rates to CFPB (2023 data).

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Illinois 2021 Predatory Loan Prevention Act capped rates at 36%, shrinking market 80%.

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Payday loan complaints to CFPB totaled 15,000 in 2022, up 10% from 2021.

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Military Lending Act caps payday APR at 36% for service members since 2007.

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Nevada's 2023 reforms limited loans to 25% of gross income, reducing volume 30%.

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Borrowers in banned states turn to online lenders 3x more (Pew 2022).

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Payday use correlates with 15% higher utility shutoff rates (2021 HUD).

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92% of payday stores closed in states with strict caps post-reform (CRL 2023).

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FTC sued 50 payday lenders in 2022 for illegal practices, recovering $100M.

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Long-term impacts include 35% credit score drop after default (Equifax 2021).

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Oregon's 36% cap led to 70% fewer loans but better alternatives (2023 state report).

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80% of payday loans are rolled over or followed by another loan within two weeks (CFPB 2022).

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Borrowers take out 11 payday loans per year on average, totaling $3,000+ (Pew 2021).

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75% of all payday loan fees come from borrowers taking 10+ loans yearly (CRL 2023).

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Only 4% of borrowers use payday loans for emergencies; 48% for recurring bills (CFPB 2019).

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Average repayment time for a payday loan sequence is 5 months (Pew 2022).

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91% of large payday lenders' revenue comes from borrowers in debt cycles (CFA 2021).

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Borrowers who roll over once pay 2.5x more fees than single-payment users (FDIC 2020).

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36% of loans result in default, leading to collections (CFPB 2023).

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Repeat borrowers (85% of volume) average 17 loans per year (Urban Institute 2022).

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67% of borrowers reborrow on the same day repayment is due (Pew 2020).

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Payday installment loans have average 8 payments but 60% refinanced (CRL 2021).

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20% of borrowers enter long-term debt traps lasting over 12 months (CFPB 2022).

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Default rates are 15% higher for online payday loans than storefront (FTC 2023).

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Borrowers spend 10% of their paycheck on payday fees annually (2021 FDIC).

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55% of loans are repaid via new borrowing within 30 days (Pew 2023).

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Military borrowers have 25% higher rollover rates than civilians (DOD 2022).

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Payday loan use leads to 27% increased overdraft fees in following month (CFPB 2021).

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Think of America's $9 billion payday loan industry as a financial trap that ensnared 12 million people just last year, with borrowers paying an average of $520 in fees for what amounts to just a few hundred dollars in actual credit.

Key Takeaways

In 2022, approximately 12 million Americans took out payday loans, generating over $9 billion in fees.
The U.S. payday loan market was valued at $3.9 billion in revenue in 2021, with storefront lenders dominating 70% of the market.
There were 22,905 payday loan storefronts operating in the U.S. as of 2020, concentrated in the South and Midwest.
70% of payday loan borrowers are women, according to a 2022 CFPB study.
The median age of payday borrowers is 37 years old, per 2021 Pew survey data.
58% of payday loan users have household incomes under $25,000 annually (2020 FDIC).
The average payday loan amount is $375 with a typical fee of $55 for two weeks (CFPB 2023).
Average APR for payday loans reaches 391% based on 14-day terms (CFPB 2022).
Borrowers pay $520 in fees for a sequence of seven loans averaging $300 each (Pew 2021).
80% of payday loans are rolled over or followed by another loan within two weeks (CFPB 2022).
Borrowers take out 11 payday loans per year on average, totaling $3,000+ (Pew 2021).
75% of all payday loan fees come from borrowers taking 10+ loans yearly (CRL 2023).
42 states allow payday lending, but 15 have no meaningful restrictions as of 2023.
Colorado's 2019 reforms capped APR at 156%, reducing average loan cost by 64%.
CFPB's 2020 Payday Rule was vacated, leading to 20% increase in high-cost loans.

Payday loans trap millions of Americans in high-cost debt cycles.

Borrower Demographics

70% of payday loan borrowers are women, according to a 2022 CFPB study.
The median age of payday borrowers is 37 years old, per 2021 Pew survey data.
58% of payday loan users have household incomes under $25,000 annually (2020 FDIC).
African Americans are twice as likely to use payday loans as whites, with 24% usage rate (2022 Urban Institute).
40% of borrowers are parents with children under 18, from 2019 CRL analysis.
Veterans comprise 8% of payday borrowers, higher than their 6% population share (2021 VA study).
62% of borrowers have a high school education or less (2023 Consumer Federation survey).
Single mothers use payday loans at a rate 3x higher than average households (2020 Census data).
25% of borrowers are employed full-time in retail or service industries (2022 BLS).
Hispanic borrowers make up 19% of users despite 18% population share (Pew 2021).
55% of borrowers rent their homes, vs 35% national average (FDIC 2021).
Disabled individuals are 1.5x more likely to use payday loans (2022 SSA study).
48% of borrowers have bank accounts but are unbanked in practice due to fees (CFPB 2020).
Elderly borrowers (65+) represent 12% of users, up 20% since 2015 (AARP 2023).
Low-credit score borrowers (below 600) comprise 80% of payday users (Equifax 2022).
35% of borrowers live in households with at least one child in poverty (2021 HUD).
Gig economy workers use payday loans 2x more than traditional employees (Upwork 2023).
22% of borrowers are college-educated but underemployed (Pew 2022).
Urban borrowers are 60% of total, but rural per capita usage is higher (USDA 2021).

Borrower Demographics Interpretation

This predatory industry cynically targets the financial desperation of America's most vulnerable, systematically extracting wealth from a core demographic of low-income women, particularly single mothers, people of color, and essential service workers who are one flat tire away from financial ruin.

Costs and Fees

The average payday loan amount is $375 with a typical fee of $55 for two weeks (CFPB 2023).
Average APR for payday loans reaches 391% based on 14-day terms (CFPB 2022).
Borrowers pay $520 in fees for a sequence of seven loans averaging $300 each (Pew 2021).
Single-payment payday loans have finance charges averaging 18% of principal (FDIC 2020).
In Texas, average fees are $23 per $100 borrowed, equating to 600% APR (CRL 2023).
Rollover fees add 76% to the effective cost of a $300 loan over 3 months (CFPB 2019).
Online payday loans charge 20-30% higher fees than storefronts (Pew 2022).
Installment payday loans have average APRs of 200-400% despite longer terms (2023 CFA).
NSF fees from failed payday repayments average $35 per incident (CFPB 2021).
Tribal lenders charge up to 795% APR in unregulated markets (FTC 2023).
The median fee for a $300 payday loan is $45, or 15% of principal (2020 Urban).
States with caps under 36% APR saw 90% drop in payday loan costs (Pew 2021).
Vehicle title loans, a payday variant, average 300% APR with $120 fees per $100 (CRL 2022).
Payday lenders collect $4.6 billion in fees annually from repeat borrowing (CFPB 2023).
Average cost sequence for payday borrower is $760 on $400 in loans (Pew 2020).

Costs and Fees Interpretation

It's the financial equivalent of a high-stakes game where the house not only always wins, but also creatively convinces you to mortgage your future for a loan shark's lunch money.

Prevalence and Market Size

In 2022, approximately 12 million Americans took out payday loans, generating over $9 billion in fees.
The U.S. payday loan market was valued at $3.9 billion in revenue in 2021, with storefront lenders dominating 70% of the market.
There were 22,905 payday loan storefronts operating in the U.S. as of 2020, concentrated in the South and Midwest.
Online payday loans accounted for 38% of all payday loan originations in 2019, up from 25% in 2013.
States without interest rate caps saw 150% more payday loan stores per capita than capped states in 2021.
The payday loan industry issued 118 million transactions totaling $46 billion in principal in 2022 across reporting states.
California had 2,300 payday loan storefronts in 2022, the highest number in any state.
Payday loan usage increased by 15% during the COVID-19 pandemic in non-capped states from 2019 to 2021.
Tribal payday lenders operated in 15 states in 2023, originating $1.2 billion in loans.
The average number of payday loan stores per 100,000 residents was 11.8 in Southern states in 2020.
Military bases had 40% more payday lenders within 1 mile in 2019 compared to non-base areas.
Florida's payday loan market volume reached $1.3 billion in 2022 with 800 licensed lenders.
Payday loan apps like Earnin and Dave saw 200% user growth from 2020 to 2023, with 10 million downloads.
In 2021, 75% of payday loans were issued in 12 states without strict regulations.
The industry employed 35,000 people in storefront operations across the U.S. in 2022.
Texas had 3,400 payday loan locations in 2023, serving 1.5 million borrowers annually.
Online payday lending grew to $15 billion in volume by 2023, led by lead generators.
Rural areas had 20% higher payday loan store density than urban areas in 2020.
Ohio's payday loan market shrank 50% after 2019 reforms, from $1.2B to $600M.
28 states plus D.C. had effective payday loan bans or strict caps as of 2023.

Prevalence and Market Size Interpretation

Despite the industry's undeniable growth and convenience, the sheer density of payday lenders in vulnerable communities paints a damning picture of financial distress being systematically mined for profit.

Regulations and Impacts

42 states allow payday lending, but 15 have no meaningful restrictions as of 2023.
Colorado's 2019 reforms capped APR at 156%, reducing average loan cost by 64%.
CFPB's 2020 Payday Rule was vacated, leading to 20% increase in high-cost loans.
18 states enacted rate caps under 36% APR since 2017, banning most payday loans.
Payday borrowers are 2x more likely to file bankruptcy within 2 years (2022 Fed study).
Strict regulation states have 50% lower complaint rates to CFPB (2023 data).
Illinois 2021 Predatory Loan Prevention Act capped rates at 36%, shrinking market 80%.
Payday loan complaints to CFPB totaled 15,000 in 2022, up 10% from 2021.
Military Lending Act caps payday APR at 36% for service members since 2007.
Nevada's 2023 reforms limited loans to 25% of gross income, reducing volume 30%.
Borrowers in banned states turn to online lenders 3x more (Pew 2022).
Payday use correlates with 15% higher utility shutoff rates (2021 HUD).
92% of payday stores closed in states with strict caps post-reform (CRL 2023).
FTC sued 50 payday lenders in 2022 for illegal practices, recovering $100M.
Long-term impacts include 35% credit score drop after default (Equifax 2021).
Oregon's 36% cap led to 70% fewer loans but better alternatives (2023 state report).

Regulations and Impacts Interpretation

While the patchwork of state regulations creates a chaotic financial landscape where payday lenders thrive like weeds in some areas and are successfully eradicated in others, the data screams that clear, strict rate caps are the only proven pesticide, consistently protecting consumers from the well-documented financial ruin these loans cause.

Usage Patterns and Repayment

80% of payday loans are rolled over or followed by another loan within two weeks (CFPB 2022).
Borrowers take out 11 payday loans per year on average, totaling $3,000+ (Pew 2021).
75% of all payday loan fees come from borrowers taking 10+ loans yearly (CRL 2023).
Only 4% of borrowers use payday loans for emergencies; 48% for recurring bills (CFPB 2019).
Average repayment time for a payday loan sequence is 5 months (Pew 2022).
91% of large payday lenders' revenue comes from borrowers in debt cycles (CFA 2021).
Borrowers who roll over once pay 2.5x more fees than single-payment users (FDIC 2020).
36% of loans result in default, leading to collections (CFPB 2023).
Repeat borrowers (85% of volume) average 17 loans per year (Urban Institute 2022).
67% of borrowers reborrow on the same day repayment is due (Pew 2020).
Payday installment loans have average 8 payments but 60% refinanced (CRL 2021).
20% of borrowers enter long-term debt traps lasting over 12 months (CFPB 2022).
Default rates are 15% higher for online payday loans than storefront (FTC 2023).
Borrowers spend 10% of their paycheck on payday fees annually (2021 FDIC).
55% of loans are repaid via new borrowing within 30 days (Pew 2023).
Military borrowers have 25% higher rollover rates than civilians (DOD 2022).
Payday loan use leads to 27% increased overdraft fees in following month (CFPB 2021).

Usage Patterns and Repayment Interpretation

The payday lending system is not designed for the single-use emergency it purports to serve, but rather thrives on a relentless, multi-month debt treadmill that systematically milks a captive clientele who must repeatedly borrow just to tread water.

Sources & References

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