Some time has passed since the UK exited the recession. At present, the economy is dealing with the big clean-up, and the new coalition government is giving this a go by bringing in a tough new budget. These include slashes to public funds and a rise in the VAT rate. Yet is the country improving at managing cash?

According to recent surveys, normal people in Britain are improving at balancing their existing debts, but may not signify that they aren’t accumulating new ones. Saving has gone up, so obviously there is evidence which shows that people are more wary about the sums of cash they hand out. Yet a survey is only capable of displaying a general average for an entire nation. Truthfully, individual debt is still very high and there are masses of consumers who experience a daily struggle with money.

On an almost daily basis, there are fresh warnings about unsafe loan providers like loan sharks, which lend money illegally to consumers who are desperate for money. Loan sharks are not legitimate loan providers, and in most cases demand extortionate rates, which the victim will never be able to pay off. When the borrower lands in difficulty with the loan, the loan shark will either hand out more money at even higher rates or introduce threatening or violent behaviour to demand settlement.

It is never worth using a loan shark because the situation will inevitably end badly. Yet what about alternative independent loans available today? What exactly is possible and which ones are safe to use?

There are loads of acknowledged loans on the UK loan market today. These include payday loans or cash advance loans, logbook loans, guarantor loans and many more independent credit products. They are not generally sold by traditional lenders however they are sold on the internet or in TV commercials.

Pay day loans are available to households who do not have an ideal credit rating, or who might have been rejected for a loan from a commercial bank.

Therefore even if an individual has CCJs or is jobless, they will generally be taken on by bad credit loans lenders. Due to the fact that the loan taker poses a higher risk to the lender, the rates on payday loans are generally a little higher than on other loans. This is due to the fact that the loan taker is more than likely to have some difficulty to repay the loan, taking into account their past experiences with loans. By introducing a slightly bigger borrowing rate, the lender is dealing with the extra risk factor. Yet, payday lenders are (in the majority of cases) fully legal lenders and will not resort to any of the approaches utilized by loan sharks. To be sure, it is good news to someone who is hard up, that they may borrow up to 1,000 pounds and receive the money quickly. Yet if they are already in a lot of debt, then it could be unwise to borrow more money.

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