payday loan default rates

Payday loan default rates refer to the percentage of borrowers who are unable to repay their short-term, high-interest loans by the due date. These loans are often used for urgent expenses but tend to have high default rates because borrowers may struggle with the quick repayment, especially if they face financial setbacks. A high default rate indicates many borrowers are unable to meet their repayment obligations, which can lead to additional fees and debt cycles. Conversely, a low default rate suggests more borrowers are successfully repaying their loans, reflecting better loan management or borrower financial stability.