Payday loans is an unsecured loan. The purpose of payday loans, is to help you take care of unexpected expenses such as an electric bill, medical prescriptions, car insurance, and so on. Payday loans is supposed to be a short-term rather than a long-term. On your next pay day, you are supposed to pay it back. Extending your payment will increase interest and decrease your credit score if it is not paid on time. This may prevent other lenders from working with you. It is always best to borrow only what you need and can afford to pay back what is owed.