Loan Stacking or “Piggybacking”

Finneas is back again! This week, it’s to discuss loan stacking or “piggybacking.” Exodus Lending received our first inquiry, including a payday loan app, roughly six years ago, but in recent years, more and more people have come to us with debt from these apps.

Our community comes to us juggling anywhere from 3-16 of these apps and they often look like this, a list of app names and amounts owed:

 True $25
 Dave $200
 Brigit $23.99
 Albert $80
 Money Lion $130.25

Users often end up borrowing from multiple lending apps at once, taking out different amounts with different repayment schedules for each new EWA loan – all borrowed against the same paycheck. This phenomenon is called loan stacking or piggybacking. And while each amount seems small, the costs add up quickly, especially after factoring in tips and fees.

For example, in the case above, $459 will be taken out of this person’s paycheck, often continuing the cycle of reborrowing. Sound familiar? Just like payday loans, we see all too often how the lack of regulation is costing borrowers immensely.