Like all the financial products from the loan market, even the payday loan comes with advantages and disadvantages at the same time.  The conscious consumers should take into consideration the pros and cons before applying for a Payday Loan.  The main problem with this loan is caused by the huge interest rate charged.  Not too many people can pay back on time the payday loan.  This is the main reason why millions of payday loan applicants all over the world are trapped into a vicious debt cycle.  Moreover, the payday loan should never be considered a permanent source of income.  This is a short term loan that has to be repaid the next time you get your salary.