Payday loans have a number of pitfalls and should be avoided at all costs by people who aren’t confident about being able to repay it as soon as possible. Payday loans are by necessity a short term loan agreement and paying it back as soon as possible is going to make it a reasonable option for somebody with a short term need for funds not fully covered by their credit card or overdraft.
Failing to repay a payday loan quickly is when you really start getting hit by the enormous interest rates and begin to build up a mass of debt. These agreements are essentially predatory in nature, as one of the reasons why somebody is going to agree to such a loan is because of a reduction in cash-flow, and this is unlikely to help with that in the long term. It is worth baring in mind that the average consumer can end up paying as much as 400% interest on their loan, which of course means that some people can end up spending considerably more than that.