Do you ever find yourself in a financial situation where you have no one available to give you the help you need? Its a predicament that many of us get into these days so its not surprising that the UK Payday Loan has become much more popular with their easy availability online. But why does the media give this credit product such a hard time on a regular basis?

The Payday cash advance is a fast loan which is accessible to almost everyone in the UK applied for without the need to leave your home or fax any documents to the lender. You can find yourself granted a loan in as little as a few minutes by filling in a simple form with a few personal details. All you have to do is relax and wait for the money to be deposited into your account.

Its not difficult to understand how this product is often thought of as the perfect solution to emergency financial situations by those in desperate need of cash but the entire industry has been bombarded with negative publicity from the media for the last couple of years. So what is the truth about the use of this product? Is the Payday Loan a monstrous product as is portrayed in newspapers and on television or is it a great option to get fast cash in a time of need?

The media attack on Payday Loans

When you read a newspaper article you will usually find that the writer has a negative view of this credit product. Their main problems they usually pinpoint are that:

1. They have excessively high interest rates.
2. These loans encourage individuals to believe that easy credit should be available whenever we want it.
3. Habitual use of cash advances make serious debt problems much more likely for the most vulnerable members of society.

Is there ant truth in the media’s portrayal of the Cash Advance?

Its not difficult to see that the media has a point that must be considered and we would all do well to remember the dangers inherent in this loan product but at the end of the day a cash advance doesn’t differ much from the other forms of fast credit on the market in that they must be used responsibly.

The media forgets that sometimes people who use type of bad credit loans product have no other option available to them. Its when medical emergencies, car breakdowns and the like occur that we need desperate measures to survive and it is in circumstances like these that a quick loan can be a lifesaver. For time like these the payday loan was invented, but that doesn’t mean you would want to use one even in these circumstances.

Should you use a UK Payday Loan?

For those who are financially cautious it is possible to discern when is or isn’t a good time to use this product. Be aware that they carry a high cost because the payday lender is taking a risk in providing such a loans and you’ll understand that the best time to use a cash advance is only in a money emergencies when you have absolutely no other option available to you.

The media’s main gripe seems to be with lenders who sell their product to people unsuitable for such a loan and in this respect I have to agree with them. The UK Payday loan could have a place in society if the lenders charged a more reasonable interest rate, but the way things are at the moment their products look like nothing other than legalized loan sharking.

If you decide to make use of this product then its your responsibility to ensure they are used in the manner intended, and take the same precautions as you would with logbook loans.

Yes its true, if you are in employment then you can get your hands on a payday cash advance without too much trouble. The thing is though, do you really want to take advantage of this form of credit or should it be consigned to the scrap heap like the infamous logbook loans?

Lets take a look at how they work.

The number of payday cash advance loans seen around town in the last couple of decades has blossomed and actually threatens to outnumber businesses like Starbucks. They are fast, easy to use and almost anyone can qualify for a loan of anywhere from £50 to as much as £1000 and have the money on the next business day. Even if you have the worst credit imaginable it is easy to qualify for a payday cash advance loan.

The question is how can the banks almost go under making bad loans but these businesses manage to not only stay in business but to flourish. The answer is simple. The lender in these instances is not simply giving away unsecured money. There are two main requirements to getting approved for one of these. The first is that you have a verifiable job and your weekly salary is not more than the amount of the loan.

The second requirement is that you have an active bank account. The lender simply puts an attachment for the amount of the loan on your next paycheck, with your bank, and when the check is deposited the amount of the loan comes off the top.

Payday loan companies obviously charge interest on the money they give you in order to make money for their business. The problem is that they charge rates which are astronomical in comparison to those that you might expect from a regular bank. As an example, the company which goes by the name of Payday UK lists the interest rate on its website at 1737%.

The reason people get sucked into these types of bad credit loans is because they only look at the money they need to borrow, and the amount they will have to repay when they get their next paycheck. Repaying £100 when you have borrowed £80 doesn’t seem so bad, but when you think about the fact that you are only getting use of the cash for a couple of weeks you realize its a very expensive proposition.

All this simply means that, like any other financial decision, you have to make some difficult choices. Shop around at the different outlets and do the math. Which one will give you the money you need at the lowest cost to yourself? The object of getting a payday loan is sold to us as being a way to help us out in an immediately serious financial situation.

The problem is that most people who find themselves needing to use a payday cash advance are the very people who are not going to be able to get back on track if they start using them. Many find that they get into a vicious circle where they take out larger loans every month until they get to the point that they don’t have enough in their paycheck to repay their latest fast cash loan.

If you really have no other choice then the least you should do is take the time to find the best rates and use the opportunity to get your financial house in order instead of sinking deeper into debt. Is absolutely essential that anyone who uses one of these instant cash loan products.