What is a Payday Loan?
Today a payday loan is alike to the loans people once took out from employers to cover short term cash flow difficulty that had to be resolved and could not wait until next payday i.e. car breaking down. These loans were typically repaid with interest.
In the modern world borrowing from employers is almost unheard off and with the current credit crisis; borrowing is become much harder resulting in many people not having right of entry to mainstream financial products like loans, credit cards, authorized overdrafts to resolve their short term financial trouble. Payday Loans are not exclusive to the UK; they are very ordinary in the US. It is reported that there are more payday franchise branches in the US than there are Starbucks coffee shops!
