A couple of days ago we started looking into the criticisms levelled at payday loans, this week we shall continue with this insight and look into a few more areas where payday loans have been criticized.

As was said in the last part, criticism has often been levelled at the high interest rates attached to payday loans, these have often put off a lot off potential customers. However, the payday loan is not designed for frivolous consumption, the payday loan is designed for those payments which require an immediate cash solution. There are a number of these situations, take for instance a situation where you are close to becoming overdrawn in your current account, there are two options either you could pay a bill of say £100 and become overdrawn facing potentially a steep penalty fee or you could take out a payday loan of £100 to pay the bill and pay interest on the loan.