Loans & Debt, Payday Loans — What to Know

Are Holiday Loans a Good Idea? What the CFPB Says About Payday and Holiday Loans

"Holiday loan" isn't a federal product category — it can describe a standard personal loan at 11.86% (Federal Reserve benchmark) or a payday product at 391% median APR (CFPB). Four out of five payday loans were rolled over or renewed within 14 days. The median borrower paid $458 in fees over 12 months — excluding principal. This article uses CFPB and Federal Reserve data to explain what the research shows, what safer alternatives exist, and what to check before signing anything.