Payday loans are high-cost short-term loans that borrowers typically use to meet their financial obligations. These small, short-term loans carry high-interest rates and steep fees. While payday lenders market their products as quick and easy ways to meet emergency financial needs, the reality is that many consumers wind up trapped in a cycle of debt. Many payday loan borrowers are unable to repay their loans, even after securing another payday loan to pay off the first one.