While payday loans are marketed to consumers as “one-time, emergency use only,” the reality is very different. According to a study of 12 million payday loans, four out of five consumers end up “rolling over” or renewing their loan within 14 days of first taking out a payday loan. This happens because most people can’t afford to pay back the entire loan two weeks after they receive it while also paying their other bills like rent, groceries, and gas.

As the loans are rolled over, the interest charges add up very quickly, placing most consumers into a worse financial situation than they were before getting a payday loan.