Payday Loans are an essential credit option to those in financial distress.  If you suffer from chronic budgeting problems the industry is here to help you solve your short-term credit crunches.

Industry critics are quick to point out that many borrowers in the payday loan industry have lower incomes and tend to come from poor areas of the country.  Although not coincidental, the average person would be surprised to find out just what type of people do avail payday loans.

When you take into consideration the alternatives, payday loans do make sense, and many of the financially sound individuals in this country are catching on as well.  Consider the following situation:

You have paid all of your bills except the utilities bill that is scheduled to be drawn from your checking account in two days.  You are short on the cash to cover the withdrawl and need $100 to make sure you don't go negative in your account.  What are your options?

1. You can borrow from a family member or friend.

2. You can allow the transaction to go through creating a negative balance in your checking account.  But, you will pay $30 in overdraft fees from your bank.

3. You can get a payday loan and pay $15-$20 in fees if you keep the loan out for the full two weeks.  Less if you pay it back early.

So, you tell me.  What looks to be the wise financial decision here?  Of course you should try and borrow the money interest free from a family member or friend.  If that doesn't work it makes sense financially to borrow from a payday lender.

Since there is no other option in the financial industry, the payday lenders have taken a step forward and allowed people to borrow even if they have poor credit.  Critics should be applauding the industry instead of trying to tear it down.

Payday Lenders are the blue collar individuals willing to stick their necks out on the line for someone in need.  I don't see any banks or credit unions willing to jump into the game, do you?