What are the disadvantages that Payday Loans inevitably come with? The most glaring disadvantage is the transaction fee. It’s too expensive for most people, and even those who can afford it agree that it is not an amount that you can easily dismiss. You just have to accept it as the price of doing business. Another disadvantage is the short time you will get to repay the loan. If you had to borrow a rather substantial amount, you will still be give just 1 pay period to repay the loan. This means it’ll most likely wipe out your entire paycheck.