Some months have gone by since the UK recovered from the downturn. At present, the economy is coping with the aftermath, and the new coalition government is attempting this by enforcing a tough new line. These include slashes to public funds and tax increases. However is the UK improving at managing cash?

If the latest surveys are anything to go by, regular British consumers are getting better at paying off their existing debts, yet may not signify that they are not stacking up more debts. Saving has gone up, so it goes to show there is a pattern which proves that people are behaving carefully about the sums of spending they undertake. But a compendium is only capable of displaying a general medium for an entire nation. In reality, individual debt is still very high and there are lots of individuals who experience a daily struggle with money.

On a regular basis, there are new cautions about unsafe loan providers like loan sharks, which offer illegal payday loans to people who are in dire need of money. Loan sharks are not legitimate loan providers, and usually demand extortionate rates, which the borrower wouldn’t manage to pay back. When the individual finishes in further debt with the loan, the loan shark will either hand out more money at even higher rates or introduce threatening or violent behaviour to dictate settlement. It is never worth going to a loan shark because the situation is likely to end in tears. However what about alternative non-bank loans on offer today? What precisely is possible and which loans are worth the while?

There are loads of authentic loans on the British borrowing marketplace today. These include bad credit loans or wage day loans, logbook loans, personal loans and other types of specialist loans. They are not generally provided by high street banks but are often found online or in television adverts. Pay day loans are on offer to individuals who do not represent the ideal borrower, or who may have been turned down for a credit product from a traditional bank.

Therefore even if an individual has CCJs or is jobless, they will usually be taken on by payday loans lenders. As the borrower poses a higher risk to the lender, the rates on these types of loans are generally a bit more steep compared with other loans. This is because the loan taker is more likely to find it difficult to repay the loan, considering their past experiences with credit products. By bringing in a slightly higher interest rate, the loan provider is managing the added risk level. Yet, payday loan lenders are (for the most part) fully legal lenders and will not employ any of the strategies used by loan sharks. To be sure it is good news to an individual who has money worries, that they can borrow up to 1,000 pounds and receive the money in a short space of time. However if they are already in a lot of debt, then it could be careless to apply for more loans.