Not all that long ago people who needed to use payday loans were looking down upon. Typically these loans were aimed at the poor, unskilled group of workers who barely made enough money to make ends meet and were forced to live paycheck to paycheck. Anyone in that situation without the ability to use a credit card in an emergency always finds it difficult to take care of financial obligations as they arrive.

With the current recession the use of payday loans has increased greatly. No longer utilized only by the lower classes of unskilled workers, many well-paid professionals are finding it necessary to use this as a way to take care of various emergency financial issues.

Many of the offices years ago were located in very dangerous and undesirable sections of town. Even walking in to one of these offices could be a bit intimidating for most people. Today however, these offices can be found in modern strip malls, downtown office buildings, and in high end professional commercial office space. Housekeepers and medical professionals can be seen standing side-by-side waiting to hand over their application.

Of course, this type of business isn’t in existence for your personal convenience. It is in existence to make money. And that it does. Consumers usually pay no attention to the interest rates being charged on these loans. Usually they are more interested in the fact that they will be able to walk out with cash and the ability to pay whatever bill or obligations that brought them there.

The problem comes if you find you can’t pay your loan off on time. Normally each payday loan has a due date within the next few weeks. Keep in mind that you are borrowing against your next paycheck. And all too often when the next paycheck comes its almost impossible to pay back the loan. When this happens, and it happens all too frequently, your interest rate is increased along with having penalties added amounts due. It’s not unheard of to end up with over $500 due on an original loan of only $250.

Unfortunately for many however, these loans are all too easy to come by. Qualifications are minimal. Depending on the company you are using for your payday loan, they may only require two weeks of pay stubs, an annual income of $15,000 or more, and picture identification. There is no credit check. Some companies will actually have you sign paperwork allowing them to attach your next paycheck if you default on your loan.

In reality, only a small portion of people who take out payday loans are able to pay them back on time without accruing additional penalties. If you are denied a long, it’s probably because the company has determined you can’t afford to take on further debt. They are doing you a favor.

If you find yourself in a position where you need emergency cash, these loans could be a lifesaver if you use them correctly and are sure you can pay them back on time.