With the cost of living increasing rapidly over the past few years, payday loans are becoming increasingly popular, even though they are relatively new to the UK, having only appeared a few years ago. Surveys taken earlier last year estimate that 1.2 million people in the UK are now regularly using payday loans, only to have seen that number gradually rise in the past year.

Payday loans are essentially loans which help to get customers from one payday to another by means of a small cash boost, which is then paid back on receipt of your next pay cheque. For example, if you find yourself in need of a small amount of cash to pay an unexpected cost when your payday is a week or so away, a payday loan will plug that gap, without any need for a credit check. Customers with poor credit ratings can apply for payday loans, as all you need to prove is that you have a monthly income (normally by providing your last payslip or bank statement) and an active bank account for the money to be deposited into. This means that payday loans are an easy and accessible way of borrowing cash quickly.

However, recently payday loans companies have had trouble recouping money they have lent out to their customers, payday loan companies now having to resort to a harder hitting tactic in a bid to get their money a lot quicker.

How much can I borrow? Many payday loan companies allow you to borrow up to 1000 per transaction, meaning that it is a great resource to use when any small yet currently un-payable costs take you by surprise. If you have all of the information necessary to take out the loan, then the money can easily be deposited into your account the very same day.

If you have all of the information necessary to take out the loan, then the money can easily be deposited into your account the same day. But be aware that you can only ever take out one payday loan at any one time.

Michael Fielding writes articles on behalf of Ferratum who provide payday loans and cash advances via mobile telephone to borrowers of required age with a good credit history.