Customers loosing faith in Banks and turning to Payday Loans for emergencies

[Stella_Roberts]

With the global economic crisis tightening its noose on the average person, the people of UK seem to have lost all faith in the possibility of the banks helping them out. More and more big banks are refusing to help borrowers with their instant cash advance needs, leaving borrowers no choice but to turn to the payday loan companies that seem to be in better stead.

The no faxing, no credit check payday loans are proving to be a huge boon for people struggling to make ends meet before the next pay cheque. An online application on the website promises fast money to almost all those who make an application, with borrowers receiving their online payday loans within a few hours sometimes. 

[AlTheLoanGuy]

I think the main problem with the current banking system is that they put too much emphasize on credit score that can easily be manipulated instead of individuals income. As the result many people apply for loans they can't afford to pay and therefore they default. Banks didn't get their money back, they failed, so the whole economy failed.

Payday loans are an alternative type of loans that should be considered but only for emergency. I personally wouldn't take a payday loan if I wanted to buy an iphone but I would take one to avoid multiple overdraft fees from my bank.