What are payday loans?

A payday loan is a small short term loan, which you are normally required to repay by your next payday.

Payday loans can be used as quick finance to help with “financial emergencies” such as:

• Final demand bills
• Food and house bills if your wages run out just before payday
• Surprise bills such as car breaking down

The number of payday loans taken out in the UK appears to be on the rise, as is the number of providers and they have come under attack in the UK press due to the high interest charges.