Of course, a lot of people don’t pay the loans back at the first opportunity. For different reasons, many people don’t have the money to pay the loan back in full when it’s due. In these cases, borrowers have to take out another payday loan; they use the money from the second loan to pay back the first loan. When this happens, the borrower has to pay the fees again to take out the second loan.
“Rolling” cash advance loans like this is what gets expensive. Since the fee from the last loan is often added to the balance when the next loan is taken out, the loan balance actually increases. The balance continues to grow as the borrower rolls the loan from week to week without ever making any payments on the debt. Doing this has meant that some people wind up paying thousands of dollars for payday loans.
In order to avoid this, it is strongly recommended that people who take out payday loans make it a priority to get them paid off as soon as possible. Ideally, pay them off as soon as they are due the first time.