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What Does A Typical American Payday Borrower Look Like?

By November 2, 2021April 28th, 2022No Comments
What Does A Typical American Payday Borrower Look Like?

What Does A Typical American Payday Borrower Look Like?

This page contains statistics about the US payday lending industry. As new data becomes available, we will keep updating and adding statistics.

How many people apply for payday loans?

Each year, 12 million Americans get payday loans. There were 14,348 payday loans in America as of 2017. 

How long do borrowers stay in debt?

A payday loan borrower can stay in debt for over 5 months

Who can apply for payday loans?

Payday loans are for consumers who earn $30,000 or less as yearly income

What are the uses of payday loans?

Payday loans are used by seven out of ten people who get them for regular, recurring expenses like rent payments and utility bills.

What is the maximum payday loan amount?

A payday loan averages $375 in size.

What is the cost of borrowing a payday loan?

Payday lenders charge an average of $520 to borrow $375. Payday loan fees amount to $9 billion annually.

What is a typical payday loan term?

Payday loans are typically taken out within two weeks to 4 weeks.

Who can qualify for a payday loan?

A person who has previously used payday loans has a 75% chance of applying again. 58% of payday loan borrowers are those who struggle to meet their monthly expenses.

Do payday loan borrowers manage to clear their debt?

Only 14% of borrowers can afford to repay their loans.

What is the interest rate for a typical payday loan?

Payday loans have an average interest rate of 396%.

Who can use a payday loan?

All generations can use payday loans, but Millennials and Gen-Xers are the most common. Payday loans have seen a surge in popularity among Millennials, as well as cash advance apps and online payday loans.

What are the stats for rollovers?

1 out of 4 payday loans ended up being re-borrowed over 9 times.

What is a payday loan?

A form of unsecured debt is payday loans.

In which states are payday loans banned?

Payday lending has been banned in 17 states and the District of Columbia.


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