Payday Loans Explained Pew Mortgage Loans.br 12 million Americans take out payday loans every year, but there are still misconceptions about how they are actually used .brbr Payday loans can look like a responsible choice for borrowers who need cash but want to avoid getting into long-term debt.brPayday loans suffer from three main problems, according to extensive research—unaffordable payments, failure to work as advertised, and excessively high .