Pay Day loans are the misunderstood relation in the financial family. Plenty of people won't touch with a barge pole due to the often outrageous interest rates attached to them over time, however, these rates only really come into play if you don't use the loan in the way in which it was intended.
Pay Day loans are loans designed to help people who are enduring brief cash flow problems. They are designed to loan you a small amount, generally between £100 and £1000, which you pay back as soon as you get paid. The loans do tend to cost a bit, with around £20 pounds interest added on to a £100 loan from most providers.
However, if you pay back the loan as soon as you get paid, then that's all the cost you will incur. Pay Day loans are designed to be easy to get. Any Pay Day loan provider will put the money into your account, often within hours, so you can get over your hump and get spending again.
The good thing is, there is no collateral for pay day loans. Generally, you just need to show a form of ID, and a recent pay slip, so the company knows you are in a position to pay the loan when you get paid. It really is that simple! You can even set up a direct debit, so the loan will come back out of your account as soon as you get paid.