New Delhi, Oct. 4 -- A cash crunch or a sudden expense just days before your salary arrives can put you in a difficult spot, especially if you don't have any savings or access to a credit card. This is where payday loans can seem like a easy way to bridge the gap, but they also come with high interest rates, fees and strict repayment timelines.

Before applying for a payday loan, borrowers should understand how much they will have to repay and whether they can comfortably meet the repayment deadline. If such factors are not taken into consideration, it may put you in a loop of debt trap and even lower your credit card for future borrowings.

A payday loan is a short-term, unsecured advance that you can use for emergencies and other urgent...