12 million Americans. $9 billion in fees. Every year.
Research from the CFPB, Pew Charitable Trusts, and academic institutions provides a clear picture of the payday lending industry: who borrows, why, how much it costs, and what happens after.
Payday lending by the numbers
12 million per year
Approximately 12 million Americans use payday loans annually. Most are employed, earn $15,000–$50,000, and use loans for recurring expenses rather than emergencies. (Source: Pew)
$9 billion in annual fees
Payday loan borrowers collectively pay approximately $9 billion in fees per year. The average borrower pays $520 in fees to repeatedly borrow $375. (Source: Pew)
Average: 10 loans per year
The typical borrower takes out 10 payday loans per year, spending 5 months in debt. Only 14% of borrowers can afford to repay a typical loan within the two-week term. (Source: CFPB)
80% rolled over within 14 days
Four out of five payday loans are rolled over or renewed within 14 days of origination. 75% of all fees are generated by borrowers who take out 10+ loans per year. (Source: CFPB)
~23,000 storefront locations
There are approximately 23,000 payday loan storefronts in the U.S. — more than McDonald’s and Starbucks locations combined in many states.
18 states + D.C. effectively ban
Approximately 18 states and the District of Columbia have fee caps or prohibitions that effectively eliminate payday lending within their borders.
Balance On Hand is a cash-flow planning tool. It is not a lender, loan servicer, or financial advisor. This page is for general educational purposes only and does not constitute legal, tax, or financial advice.