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Whilst it's difficult to predict what the future has in store for payday loans, it's true to say that they've become a leading short term financial solution for many people. Despite much criticism aimed their way, payday loans have established themselves as an excellent alternative to traditional borrowing from banks and other financial institutions.

So, what's the reason behind payday loan's meteoric rise? Well the state of the economy has played a huge part, as well as the financial situation concerning medium to low income earners.

It has been well documented that economies within the western world have all suffered of late, largely because of the banking crisis, but also because of the growth of emerging economies like Brazil, Russia, India and China. In addition, within the UK specifically, there's what's known as a deficit within the economy, whereby the government were borrowing more money they were making. All of this has meant that cuts to jobs and budgets are rife, both in the public and private sectors. With the rate of inflation rising, as well as the cost of living, coupled with the cuts in wages, it has made getting by from month-to-month harder for those citizens on modest incomes.

In a way, the financial crisis has created the perfect environment for which payday loans can thrive. Short term loans have been a welcomed relief for those who just need a little extra cash to get by from month-to-month. Some people may find that towards the end of the month, they may need a little extra cash to pay for things like bills, food and emergency situations. With payday loans it became possible to apply for small amounts of cash, and receive the money the very same day; whereas before, payday loans came onto the scene, things were markedly different.