Money Payday Loan Statistics
Payday loans offer quick access to cash for anyone experiencing unexpected expenses or financial shortfalls between paychecks. These short-term, high-interest loans are used by many Americans, but they often come with risks and the potential for significant costs.
A survey of 1,643 adults was carried out on behalf of Self Financial to understand how many people are using payday loans, what they are using them for, and how different demographic groups use these types of loans.
Key statistics from our survey
- People borrow an average of $161 when they take out a payday loan, with the most common borrowing range being $101-$200 (45% of borrowers).
- Women are more likely to have used a payday loan at any time in their lives (91.3%) compared to men (84.5%).
- Millennials are the most likely age group to report ever using a payday loan (91.9%), while baby boomers are the least likely (42.1%).
- The most common reason people take out payday loans is to help them make credit card payments (45%), followed by covering everyday bills and expenses (39.9%).
- 45.1% of payday loan borrowers said that using these loans made their financial situation worse.
- More than half of payday loan users (53.4%) say they regret using them, and 66.2% report feeling stressed as a result of using them.
Other key statistics
- Approximately 12 million Americans use payday loans each year, accounting for around one in 20 adults in the U.S.
- The Consumer Financial Protection Bureau (CFPB) received 2,400 complaints about payday loans in 2024.
What is a payday loan?
A payday loan is a type of short-term loan, typically for a small amount of money, and often accompanied by high fees. The exact way a payday loan works depends on where you live, as state laws surrounding them vary.
Payday loans generally verify ability to repay or require a credit check, with practices varying by state and lender, and come with short repayment terms, requiring you to repay the loan by your next pay period. These loans usually allow you to borrow $500 or less, and often come with costly fees, ranging from $10 to $30 for every $100 you borrow. [1] CFPB. "What is a Payday Loan?" https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/
How many people use payday loans?
Data from Pew Research shows that in 2013 around 12 million Americans used them each year, accounting for roughly one in 20 adults. A study by the Consumer Financial Protection Bureau found that 4.7% of U.S. households reported using at least one payday loan in 2023, up from 4.6% in 2022. [2] Pew Research. "How Borrowers Choose to Repay Payday Loans" https://www.pew.org/-/media/assets/2013/02/payday_loans_report2overview_finalforweb.pdf [3] CFPB. "Making Ends Meet in 2023" https://files.consumerfinance.gov/f/documents/cfpb_making-ends-meet-in-2023_report_2023-12.pdf
Of those surveyed on behalf of Self, 88.8% said they had used a payday loan at least once in their lives, and women are more likely than men to have ever used one (91.3% compared to 84.5%).
People living with friends or family are most likely to have taken out a payday loan at some point, with 94.9% of people in this group reporting having used one; this is compared to 92.2% for renters and 75.8% for homeowners.
Over half of payday loan users (53.7%) said they use online services to access these loans, while 37.3% access them in-store, and 7.7% use mobile apps.
Payday loan usage by age range
Survey data shows that Millennials (aged 29-44) are the most likely to have used a payday loan, with 91.9% reporting having used one at least once in their lives, followed by Gen Z (aged 18-28) at 73.3%. Baby boomers (aged 61-79) are the least likely to have used a payday loan at any time, at 42.1%.
A report from the Federal Reserve also suggests higher levels of usage in people in their 20s and 30s, finding that 7% of adults aged 18-29 had used a payday, pawn, auto title, or refund anticipation loan in 2023, and 9% of adults aged 30-44 had used one during this period. [4] Federal Reserve. "2024 Economic Wellbeing of U.S. Households" https://www.federalreserve.gov/publications/2024-economic-well-being-of-us-households-in-2023-banking-credit.htm
| Age Range | % who have used a payday loan |
|---|---|
| 18-28 | 73.3% |
| 29-44 | 91.9% |
| 45-60 | 64.6% |
| 61-79 | 42.1% |
| 80+ | 50.0% |
Payday loan usage by annual earnings
The likelihood of someone using a payday loan varies by average annual earnings as well as other demographics. Those with an average annual income of under $20,000 are the most likely to have used one of these loans, with 98% saying they have used one at least once. People earning over $100,000 per year are the least likely to have ever taken out a payday loan, with less than half (45.3%) of people in this group reporting ever using one.
| Annual earnings | % who have used a payday loan |
|---|---|
| Under $20,000 | 98.0% |
| $20,001-$40,000 | 56.7% |
| $40,001-$60,000 | 84.0% |
| $60,001-$80,000 | 75.8% |
| $80,001-$100,000 | 81.0% |
| Over $100,000 | 45.3% |
How credit scores impact payday loan usage
Data from the survey on behalf of Self found that as credit scores increase, the likelihood of someone using a payday loan decreases. Of respondents who indicated they had Poor FICO credit scores (under 580), 98.9% said they had used a payday loan at least once in their lives. This statistic decreased with each higher credit score, and those in 2025 with Exceptional FICO scores (over 800) are the least likely to have ever borrowed money through a payday loan (47.2%) at some point in their lives.
Payday loans are typically not reported to the three major credit bureaus, so they are unlikely to impact your credit score directly. However, a lender might sell your payday loan debt to a debt collector if you don’t make on-time repayments, and debts in collections could hurt your credit score. [5] CFPB. "Can Taking Out a Payday Loan Help Build My Credit or Improve My Credit Score?" https://www.consumerfinance.gov/ask-cfpb/can-taking-out-a-payday-loan-help-rebuild-my-credit-or-improve-my-credit-score-en-1611/
| Credit Score Range | % who have used a payday loan |
|---|---|
| Under 580 (Poor) | 98.9% |
| 580-669 (Fair) | 97.3% |
| 670-739 (Good) | 80.3% |
| 740-799 (Very Good) | 67.9% |
| 800+ (Exceptional) | 47.2% |
How often do people use payday loans?
Of those surveyed who said they had used a payday loan in the past 12 months, 40.3% had used them twice (the most common answer), and 38.7% had used a payday loan once. Just 0.4% of people had used one ten times or more, and only 7.4% had used them five times or more.
| Once | 38.8% |
| 2 times | 40.3% |
| 3 times | 8.1% |
| 4 times | 5.4% |
| 5 times | 2.8% |
| 6 times | 1.3% |
| 7 times | 1.6% |
| 8 times | 1.0% |
| 9 times | 0.3% |
| 10 times | 0.2% |
| More than 10 times | 0.2% |
How much do people borrow with payday loans?
Among payday loan users, the average amount people borrowed was $161. The most common amount borrowed was $101-$200 (45%), followed by $100 or less (32.1%). Only 1.9% of people reported borrowing more than $500 through a payday lending service.
According to a 2025 Center for Responsible Lending report using 2022 data, borrowers took out more than 20 million+ payday loans, totaling nearly $8.6 billion with fees exceeding $2.4 billion Due to reliable figures from online payday lending services not being publicly available, this data mainly reflects storefront lending, and so the true cost of these loans is likely to be much higher. [6] Responsible Lending. "Down the Drain: Payday Lenders Take $24 Billion in Fees From Borrowers in One Year" https://www.responsiblelending.org/research-publication/down-drain-payday-lenders-take-24-billion-fees-borrowers-one-year
| Amounts people typically borrow through payday lending | % of respondents |
|---|---|
| $100 or less | 32.1% |
| $101-$200 | 45.0% |
| $201-$300 | 12.2% |
| $301-$400 | 4.8% |
| $401-$500 | 4.0% |
| More than $500 | 1.9% |
Average payday loan debt among borrowers
Based on respondents who had some level of outstanding payday loan debt, the average amount of debt was $161, and the most common amount of debt was $101-$200 (37.7%). The majority (77.1%) of people with payday loan debt have less than $200 outstanding. Only a small number of payday lending borrowers had debt of more than $500 in these kinds of loans (1.9%).
What do people use payday loans for?
Of the respondents who have used payday loans, the most common reason they used them was to help them make credit card payments, with 45% reporting this as the main reason they used them. This was followed closely by paying for everyday bills and expenses at 39.9%, and 8.4% said they used payday loans to cover financial emergencies or unexpected expenses.
| Reason for using payday loans | % of respondents |
|---|---|
| Credit card payments | 45.0% |
| Paying for everyday bills and expenses | 39.9% |
| Financial emergencies | 8.4% |
| Car payments | 3.7% |
| Birthday or holiday gifts | 1.7% |
| Vacations | 0.7% |
| Other | 0.5% |
The impacts payday loans have on users
When asked what kind of impact they thought payday loans had on their financial situation, the responses were quite evenly split among respondents who had used payday loans in the past. The largest proportion (45.1%) said they thought payday loans made their financial situation worse, but a similar number (43.5%) said using these loans had improved their financial position.
More than half of those who have used payday loans (54%) say they regret using them. However, 55.8% of respondents (including those who had never used payday loans before) said they would consider taking out a payday loan in the future.
| How do you think payday loans impact your financial situation? | % of respondents |
|---|---|
| It varies depending on the situation | 5.11% |
| They don't change it | 6.35% |
| They improve it | 43.5% |
| They make it worse | 45.05% |
66.2% report feelings of stress relating to payday loans
Survey respondents were asked if they had ever experienced any negative impacts as a result of using payday loans. Two-thirds (66.2%) reported feelings of stress relating to these types of loans, while 61.9% said they had lost sleep, and almost half (48.7%) said it had negatively impacted their relationships.
| Payday loan impact | % of respondents |
|---|---|
| Feelings of stress | 66.2% |
| Losing sleep | 61.9% |
| Negative impacts on relationships | 48.7% |
| Struggling to pay for other things | 34.1% |
| None | 28.2% |
Data note: Respondents could select multiple answers.
Payday loan complaints statistics
Data from the Consumer Financial Protection Bureau (CFPB) shows that approximately 2,400 complaints about payday loans were submitted to them in 2024. Approximately 60% (1,400) of these complaints were sent to payday loan companies to review and respond to, 32% were sent to other regulatory agencies, and 6% had no action taken against them. Payday loan companies responded to 93% of these complaints, and 83% were closed with an explanation, 4% with monetary relief, and 2% with non-monetary relief.
The most common reasons people gave for complaints against payday loan companies included being charged fees or interest they didn’t expect (27%), struggling to pay back their loan (18%), and receiving a loan they didn’t apply for (12%).
Payday loans obtained through online sources received more complaints than loans obtained through in-store services (67% vs 18%) with 15% not stated. [7] CFPB. "CFPB Annual Report 2025" https://files.consumerfinance.gov/f/documents/cfpb_cr-annual-report_2025-05.pdf
Payday loan fees and interest
While these loans provide quick access to cash, they come with costs that can significantly exceed those of other borrowing options.
The cost associated with payday loans can vary depending on where you live, as some states set maximum amounts for payday loan fees. Often, these fees can range from $10 to $30 for every $100 borrowed. This means that a typical two-week payday loan with a fee of $15 per $100 equates to an annual percentage rate (APR) of almost 400%. For context, the APR on a credit card ranges between 12% and 30%. In states that allow payday lending, the maximum loan amount, the fees, and the cost of the loan are capped. [1] CFPB. "What is a Payday Loan?" https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/
Alternatives to payday loans
There are several alternatives to payday loans you could consider if you need to access money to cover a financial emergency or an unexpected cost. These alternatives can help you get the funds you need while avoiding the high fees and interest rates associated with payday lending. Some of these include:
- Cash advances - This is a type of short-term cash loan that you can borrow from your credit card issuer. The amount you borrow as a cash advance will be added to your credit card balance, and it’ll accrue interest until it’s repaid. You might have to pay a cash advance fee to use this service, and the APR on a cash advance is often higher than the APR for credit card purchases.
- Self Cash* - Another type of cash advance you might want to consider. Self Cash offers small, no-credit-check advances with instant (fee-based) or free ACH delivery, aiming to bridge gaps between paychecks without impacting your score - while a credit card cash advance uses your existing line, incurs high fees (3-5%+) and higher interest immediately, and can hurt your score by increasing utilization, making Self Cash potentially cheaper and safer for small, short-term needs.*
- Credit union payday alternative loans (PALs) - Federal credit unions offer loans that typically have lower costs than payday loans. They are regulated by the National Credit Union Administration (NCUA), and the loan terms, fees, and amounts you can borrow are all capped. [8] My Credit Union. "Payday Alternative Loans" https://mycreditunion.gov/manage-your-money/consumer-loans-credit-cards/payday-alternative-loans
- Personal loans - These loans enable you to borrow money from financial institutions like banks, credit unions, and online lenders, which you pay back in regular installments. [9] Experian. "What is a Personal Loan?" https://www.experian.com/blogs/ask-experian/what-is-a-personal-loan/
How people use payday loan alternatives
The majority of survey respondents (61.7%) said they would consider using alternatives to payday loans in the future.
More than half (51.9%) reported using bank loans in the past, making this the most commonly used alternative loan. 45.7% said they had used a cash advance service, and 34.5% had taken out a credit union loan at some point.
| Have you ever used one of these alternatives to payday loans | % of respondents |
|---|---|
| Bank loan | 51.9% |
| Cash advance | 45.7% |
| Credit union loan | 34.5% |
| Borrowing from friends or family | 27.7% |
| Buy now pay later | 17.8% |
| Paycheck advance | 4.1% |
| None | 5.0% |
Data note: Respondents could select multiple answers.
Methodology
A survey was carried out on behalf of Self in October 2025, asking 1,643 adults about their experiences of using payday loans, including how often they used them, and the impact these loans had on them.
The demographics of the respondents were as follows:
Gender:
- Female - 64.7%
- Male - 35.3%
Age range:
- 18-27 - 4.2%
- 28-43 - 88.8%
- 44-59 - 5.5%
- 60-78 - 1.3%
- 79+ 0.1%
*Self Cash is offered in the Self app only, bank account connection via Plaid and associated debit card required, not offered in all states.
Sources
- [1] CFPB. "What is a Payday Loan?" https://www.consumerfinance.gov/ask-cfpb/what-is-a-payday-loan-en-1567/
- [2] Pew Research. "How Borrowers Choose to Repay Payday Loans" https://www.pew.org/-/media/assets/2013/02/payday_loans_report2overview_finalforweb.pdf
- [3] CFPB. "Making Ends Meet in 2023" https://files.consumerfinance.gov/f/documents/cfpb_making-ends-meet-in-2023_report_2023-12.pdf
- [4] Federal Reserve. "2024 Economic Wellbeing of U.S. Households" https://www.federalreserve.gov/publications/2024-economic-well-being-of-us-households-in-2023-banking-credit.htm
- [5] CFPB. "Can Taking Out a Payday Loan Help Build My Credit or Improve My Credit Score?" https://www.consumerfinance.gov/ask-cfpb/can-taking-out-a-payday-loan-help-rebuild-my-credit-or-improve-my-credit-score-en-1611/
- [6] Responsible Lending. "Down the Drain: Payday Lenders Take $24 Billion in Fees From Borrowers in One Year" https://www.responsiblelending.org/research-publication/down-drain-payday-lenders-take-24-billion-fees-borrowers-one-year
- [7] CFPB. "CFPB Annual Report 2025" https://files.consumerfinance.gov/f/documents/cfpb_cr-annual-report_2025-05.pdf
- [8] My Credit Union. "Payday Alternative Loans" https://mycreditunion.gov/manage-your-money/consumer-loans-credit-cards/payday-alternative-loans
- [9] Experian. "What is a Personal Loan?" https://www.experian.com/blogs/ask-experian/what-is-a-personal-loan/
