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A cash payday advance can be used to repay another payday loan but it may ultimately be a costly solution for the borrower. This is because these loans typically have high interest rates and fees associated with them. Taking out a second payday loan to repay the first one will eliminate the original debt, but the borrower may now face an even higher fee especially if he was required to take out a second loan large enough to repay the original debt plus the fees and interest associated with the debt.
Repaying a cash payday advance with another payday loan may also not be a good idea because some cash advance lenders may have restrictions on this practice. In particular, a lender may decline a payday loan application if the applicant already has more than one loan which has not been fully repaid.