Should You Take Out a Payday Loan?

When you're stuck in a financial rut and your paycheck isn't enough to cover your expenses, what do you do? Most people rely on cash advances from employers or credit cards to get by. If those two options do not work, another hot solution that's currently making waves in the UK are payday loans.

Unfortunately, payday loans, while very popular and easy to avail, have created a huge buzz in the industry largely because of controversies. Many experts discouraged consumers from taking out payday loans because of the cost and the risks involved. Average APR for majority of payday loans in UK is at 1,000% or more. Plus there's also a greater likelihood of getting yourself in a debt trap. To avoid those consequences, expert suggests steering clear completely from payday loans.

On one hand, there are people who are left with no choice when it comes to fast cash solutions. Take for instance people with bad credit. Banks turn them down and major lenders look the other way too. Since they have no other alternative left, payday loans become a very enticing solution regardless of the high cost.

Between your situation and what the experts say, should you take out a payday loans? The answer to that will depend on how responsible you are as a borrower. Taking out a loan should be fine as long as you know the risks. The secret is to commit to pay on time and make this a one time deal.