However for many people on low incomes or with a poor credit rating, the choice of borrowing options is very limited. Following the economic recession and credit crunch, many consumers have been cast adrift by mainstream lenders who have severely restricted their lending to individuals they regard as risky.

As a consequence payday loans have become popular for cash strapped consumers who are not able to borrow from a mainstream lender because of their status.

Payday loans are fine as a one-off if you are perhaps faced with the need for emergency cash to pay for an unexpected bill. They should never be used as a long term financial commitment and people turning to payday loans on a frequent basis need to appraise their spending. People who defer repayments and continue to borrow more cash will inevitably plunge deep into debt.