Is a payday loan right for me?

As long as you have a regular income and an active bank account with a debit card, a payday loan could be suitable for you.

As most payday loans are paid into your bank account immediately, or the next day at the latest, they are also popular with those needing an instant cash injection – whether that is to repair the boiler, pay for emergency dental treatment or help a family member in need of support.

The loans are also suitable for tenants as, unlike with most loans, it is irrelevant whether you are a homeowner or not.

People with flawed credit ratings are also likely to be accepted for payday loans.

Some payday loans firms will, however, require you to write a post-dated cheque which will be cashed by the lender as soon as your salary is paid into your bank account.

Payday loans also come with a health warning: because the interest rates are so high, they should only be viewed as a short-term borrowing facility and not a solution to an ongoing financial problem. If you are struggling financially, a payday loan could exacerbate, rather than ease your problem because the amount you owe will spiral quickly if you do not repay the debt in full within the agreed term.