How the study was designed
The analysis used two waves of the CFPB Making Ends Meet survey, conducted in June 2019 and June 2020, linked to traditional credit-bureau information.
Why persistence matters
A short-term product can have very different economics when used once versus repeatedly. Repeat use can increase cumulative fees and may indicate that the underlying income/expense mismatch was not resolved by the first loan.
Credit access is not uniform
The research also found that some users had lower-cost credit available on credit cards, while others did not have access to traditional credit. That makes broad claims such as “everyone has a cheaper alternative” inaccurate.
Important limitation
Because the survey sample was drawn from traditional credit-bureau data, the study does not describe consumers who lack traditional credit records. The pandemic period also makes the second survey wave unusual.
Where this connects
See payday loan apps, total borrowing cost, missed payments and financial-resilience evidence.
Primary sources
Consumer Use of Payday, Auto Title, and Pawn Loans
Consumer Financial Protection Bureau · 2021
Analyzes two waves of the Making Ends Meet survey; useful for persistence and financial-shock context, with limits for consumers outside traditional credit records.