We all like to get to the end of the month with some money left over from our pay packet. It is a situation that happens rarely to many of us, but is a highly desirable situation nonetheless. On the other hand, getting to the end of our money with some month left is a situation no-one wants.

Nonetheless it happens, and has probably happened to most of us at one time or another. Things like sloppy budgeting, an emergency situation or an unforeseen change in circumstances can mean that all of a sudden you are in a position that seems to have no immediate solution – and this is a problem.

This is why for many people in the UK payday loans have become a way of keeping the wolf from the door, on an occasional basis. They are not a long term option, because the rate of repayment is such that it will present problems if you borrow any more than you need – but they can be beneficial.

UK payday loans are there for a specific purpose – when you have no money left and no source of alternative funds. Given this problem, you have to consider how much you will need to get you to the end of the month. Unavoidable spending such as food, rent and travel are all reasons to consider a payday loan.

When you are in this situation, think about what you absolutely need to spend. You should not take out a payday loan to cover a rent shortfall, put some food in the fridge and buy a CD you’ve wanted for a while. The interest on the loan means that excess borrowing is a bad idea.

For borrowers in the london payday loans can be the difference between getting evicted and staying in your home – but only if they are treated sensibly, and act as an alarm bell with regard to living within your means. They are a one-off solution.