Payday loans spent a lot of time in the news in 2012 in the UK: and you can be guarateed that the majority of it was negative. Compared to legal loansharking, branded a rip-off that causes debt spirals, and even spawning groups campaigning against them. There are plenty of stories of grotesque debt that individuals have got into and even desperate measures that the ‘victims’ have resorted to – such a stealing and criminal activity! Are thesy so obscene? It’s easy to quote the horror stories and the high APR (up to 4000% apparently) and these make the loans seem like piracy. In reality, it’s true that these are high interest loans, but they are designed as short term loans for emergency usage. They are not solutions to serious debt problems and should be approached with caution; but if used correctly may help solve a temporary need for quick cash.