October 2, 2026
BRENTWOOD, Tenn. — Finding themselves in a tough financial hole, many people have attempted to use payday loans to dig themselves out.
Self-identified Christians living in the 27 states without meaningful regulations on those types of small, short-term unsecured loans often have a complicated relationship with payday advances and the lenders who offer them, according to a Lifeway Research study sponsored by Faith for Just Lending.
More than 3 in 4 believe it is a sin to loan money in a way that the lender gains by harming the borrower financially, and most describe payday loans as expensive. Still, 1 in 3 have obtained a payday loan themselves, and a growing number see such loans as helpful. Most also want some type of government intervention and church involvement around these issues.
“The proliferation of retail payday lending establishments has increased the first-hand knowledge many Christians have of these financial institutions,” said Scott McConnell, executive director of Lifeway Research. “The majority of Christians in states with few regulations on payday lending want more regulations that protect borrowers.”
Personal experience
For Christians living in a state without significant regulations on payday lending, a third have obtained that type of loan for themselves—double the 17% who said so in a similar 2016 Lifeway Research study. Additionally, nearly half say they personally know someone who has gotten a payday loan.
When asked to choose which words apply to payday loans, most say expensive. Others use the words "harmful," "predatory" and "immoral." However, a growing number use positive terms. More than 1 in 3 say such loans are "helpful," and "useful."
“Short-term financing is a real need for many Americans, so you expect to see a growing number of customers who appreciate the payday lending service. Yet, many describe payday loans with language that sounds more like warnings than endorsements,” said McConnell.
When asked directly, more than three-quarters of Christians in states with few regulations believe it is a sin to loan someone money in a way that the lender gains by harming the borrower financially.
Regardless of their knowledge or experience, most Christians underestimate the percentage of payday loans that are rolled over into a new loan with additional fees after the first two-week period. According to a Consumer Financial Protection Bureau report, 82% of these loans are renewed within 14 days.
Government involvement
Christians in states without regulation seem supportive of increased government involvement in the industry. Close to 2 in 3 say 36% or less should be set as the maximum reasonable annual percentage rate (APR) of a loan, with 39% saying it should not go above 12%. Only 7% believe there should be no maximum reasonable APR.
More than 3 in 4 believe laws or regulations should protect borrowers from lending practices that create loans that can’t realistically be repaid without additional loans. Specifically, 84% say laws or regulations should prohibit lending at “excessive interest rates.”
More than 9 in 10 agree that lenders should take into account the borrower’s income and expenses and only extend loans at “reasonable interest rates” based on the ability to repay within the original loan period.
“Christians expect far more regulations that protect borrowers than exist in these states,” said McConnell. “The Bible does not define at what rate excessive interest begins, but it does forbid it. So, it is not surprising that most Christians want to eliminate excessive interest rates.”
Church response
While Christians in states where payday lending exists with little to no regulation want legal responses to the industry, most also expect the church to be involved in addressing the issue.
Nine in 10 believe churches should teach and model responsible stewardship and offer help to neighbors in times of crisis.
When asked what they’d like to see their church offer related to payday loans, most point to guidance for those with financial needs. More than a third would like to see their church provide gifts or loans for those facing financial emergencies. Around 1 in 5 want their congregation to advocate for changes in laws or regulations, care for those with repeating payday loans or deliver sermons that share biblical principles on fair lending.
Around 1 in 10 say their local church already offers guidance or assistance related to payday loans, though 2 in 5 say their church doesn’t provide those.
Still, Christians in states with little to no regulation on payday lending say they’re looking to their church to provide some guidance and help on the issue, but McConnell says too many aren’t finding it. “Most churches are silent on payday loans at times when Christians desire advice and emergency help,” he said.
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Aaron Earls is a writer for Lifeway Christian Resources.
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