As the name suggests. This is a loan you can take up if things get tough during the month while you are expecting payment at the end of the month. End of the month here simply mean when you are getting paid, ie your payday, hence the name payday loan. This type of loan has become very popular in recent time. It is made popular because of banks squeeze on loans and credit facilities. Gone are the days when you can simply pick up the phone and ring your bank in the middle of the month for overdraft facility till payday. Bank nowadays simply say no to majority of such request.
 
We all have requirement to spend more than what we have in the bank every now and then. It could be because of special occasion, unexpected expenses, unexpected parking charges, etc the list is endless.  Cash flow is difficult for everyone at the moment because of the current financial climate, high price of groceries, rise in fuel costs, high taxation on goods. The pressure on everyone regular income is continually growing. What happened when you don't have enough in the bank to pay the bill or you mistaken overdraw your account? The banks come down on you like a ton of brick with charges. Charges of £35 per failed item is not uncommon. Imagine when you have 3 items failing!!!
 
All the above made payday loans a very popular loan. Instead of incurring the wraths of banks, it is a lesser evil. Payday loans companies charge heavily for their service but pretty much insignificant if you compare it with financial consequence of getting on the wrong side of the banks. If the payday loan company charge you £20 for giving you a quick and easy to arrange loan of £100, it is a lot better to cover that 3 direct debit of tv licence, sky tv subscription and car insurance payment, all totalling £80. If you don't cover these items with sufficient credit in your account, the bank charge you a massive £105 for returning these items unpaid. The total cost of not having enough credit in your account is therefore £185. (bank charges of £105 + cost of the 3 items in your account of £80 ). Compare this with the cost of payday loan £100 (£80 loan + £20 charges)
 
The more annoying aspect is, the banks don't say thank you for charging you heavily, instead they report you to credit reference agencies. This put you in a bad situation if you need to apply for loan, mortgages  or credit cards in the future. If you are in a situation, instead of letting the banks charge you excessively, a more better option is take the plunge and sort out a payday loan. There are lots of payday loan companies all over the place, if not sure try and search for payday loans in manchester (depending on your location)