- Over 80% of payday loans are rolled over or followed by another loan within 14 days. The CFPB defines loan sequence as a series of loans taken out within 14 days of repayment of a prior loan.
- 15% of new loans are followed by a loan sequence at least 10 loans long. Half of all loans are in a sequence at least 10 loans long.
- Monthly borrowers are disproportionately likely to stay in debt for 11 months or longer.
- Most borrowing involves multiple renewals following an initial loan, rather than multiple distinct borrowing episodes separated by more than 14 days. Roughly half of new borrowers (48%) have one loan sequence during the year. Of borrower who neither renewed nor defaulted during the year, 60% took out only one loan.
Read the full report.