An industry that continues to strengthen in these uncertain times is that of payday loan lenders. As more and more people struggle to meet their bills, and get weighed down by increasing credit problems, they are happy to provide a service. However, many claim they are simply draining money away from already struggling communities. Others state they are providing an essential service to those with no credit. This type of loan isn't legal in every state because some states believe that the industry is taking advantage of people. Other states say that they have no right to regulate the interest that's charged on loans.

The simple truth is that both points of view are accurate. And, like anything, there will be the unscrupulous contingent that will not practice in a fair and responsible way.

However, many of the more respected payday loan lenders have been a boon for those with poor credit histories, particularly in times of emergency. Such instant loans have also proven beneficial for others, when an unexpected bill has arrived, or perhaps a last minute invitation to a weekend away.

As with most financial regulations, each state is very much responsible for setting its own laws. As a result, payday loan lenders very considerably in the service they offer and amounts available can vary wildly. Most will loan up to an individual's monthly wage however.

The bone of contention for many is over the sizable amounts of interest payday loan lenders impose on their loan agreements. Where regular banks are limited to charging no more than 24% APR on a loan, payday loans have been known to charge well over this - up to as much as 650% APR. However, campaigners for the industry say these are in line with overdraft and credit card charges.

Whilst costs are high, particularly if the loan is over an extended period of time before the next payday, many are still attracted by the instant access to cash. Whether applying online or face to face, an applicant would expect to receive the cash within twenty four hours as a maximum, and often instantly.

The lack of security validation and credit checks speed up this process. All that is necessary when applying through payday loan lenders is proof of employment, a checking account and proof of age, (over 18).

At times when money seems a little short, or perhaps to get the car fixed for that trip upstate, payday loan lenders will give many people the ability to sort things straight away. However, it is important to understand that any loan is a serious commitment, and should only be entered into if you are certain of being able to meet the terms of repayment.

Many payday loan companies are pretty shady and don't do honest business. I would try really hard to find a company that charges less than 100% interest. This is actually pretty hard with lenders for payday loans because they ARE taking a lot of risk. Do your best to find a reasonable loan and fix your credit pronto. This will help you long term and will provide you with what you need to move forward.