The number of people using payday loans in the UK has increased by over 4 times during the last four years, from 1.2 million in 2006 to 4.1 million in 2010. U.K. borrowers take out an average of 3.5 loans per year and the average size of a loan is an estimated £294. Just like in the United States, high late fees charged by banks, cable companies, phone companies and utility providers make payday loans a rational choice for many U.K. consumers. Compared to a $30 or $40 late fee on a small amount owed, taking a payday loan for £500 payday loan for a £100 fee makes sense. The economic downturn has hit the UK very hard and the impact has been less available credit for consumers. Therefore, many consumers are turning to payday loans as their only source of credit in these tough times.

Another driving factor behind the growth of the U.K. industry is the entrance of American companies. Companies like Quick Quid are units of large internet lenders in the US. These companies see the UK as a relatively large market with a more stable regulatory environment than many states in the U.S. The U.S. market is driven by state laws and the U.K. industry is estimated to be as big as the 3rd or 4th largest state in the U.S. So, American companies are driving innovation and demand in the U.K.

Getting a loan from a local store can be difficult and time consuming process. In the U.S., online companies cannot deliver fund to the consumer until the next day, so many consumers prefer to get their cash immediately at a storefront location. However, in the UK, consumers can usually get their funds in a matter of hours, making online cash advances an easier, more convenient option for them. The final reason online payday loans in the UK are so popular is due to the higher relative real estate costs in Great Britain. In the U.S., real estate is typically much cheaper and more readily available. Higher costs in the UK drive up the costs of stores and therefore drive many more payday lenders to the internet in the U.K. The payday loan industry in the UK is growing by leaps and bounds. There are many reasons for this growth, but the aforementioned five reasons are the major driving force behind this expansion.

Dying to get your hands on that way-too-expensive little black dress you saw at the mall? Has the piece of crap you call your cellular phone ultimately stopped working? Have you wanted to chuck your old film camera for a new 12-megapixel digital one? Are your utility bills long overdue? Is your landlord threatening to kick you out of your flat because you couldn’t pay up? Are you in need of emergency money to pay for something that can’t wait?

If you are a little short on cash, the first thing that would cross your mind would probably be: “I have to get a loan.” Solves your money problems temporarily, right? The only problem is you already have a bad credit history. You would never get a loan approved anywhere, you think. That’s where bad credit guaranteed loan UK come in. A lot of lenders in the United Kingdom provide bad credit loans that allow you to borrow the cash that you need in an easier and more convenient way. How? One is through payday loans.

What are payday loans? It’s pretty simple, really. A payday loan is sort of like a cash advance – you borrow cash and then pay it on your next payday. A payday loan company doesn’t check on your credit to approve your loan. All it needs is to know is that you can pay back what you borrowed. This can be done through a pay stub from your employer and your bank account. The process of getting your payday loan approved is also a lot quicker and more convenient than regular loans. You can even apply for a payday loan over the internet. How’s that for convenience? Of course, you have to remember to use your loan within the agreed timeframe so you wouldn’t have to pay extra fees due to late repayment.

Now, that bad credit is not a problem anymore where loans are concerned. You can lessen the stress of having to worry whether or not your electricity will be cut off, or whether or not you can pay your landlord and stay in your flat. Maybe you can even just indulge and buy yourself a new cellular phone, or a new camera, or maybe even both. With bad credit guaranteed loans, you can now sleep a little soundly at night without having to worry where you’ll get a bundle if the need arises.