Research from price comparison service, uSwitch.com, has found that, unlike secured loans and other forms of personal unsecured loans, payday loans offer quick and easy cash, but beware, they are one of the most expensive forms of loans in the UK, with some APRs of up to 9889.3%.

Secured Loan Now specialise in arranging secured loans, personal unsecured loans, homeowner loans, home improvement loans, car finance loans and debt consolidation loans using whole of market high street banks and specialist finance lenders.

According to uSwitch.com, a consumer taking out a payday loan of £750 could end up owing £1,687.50 if they defer repayments for five months.

In comparison, the interest rate on a personal unsecured loan can be as low as 6% or about 8% on a secured loan.

Payday loans are becoming more popular and are seen as attractive to younger people who are finding it hard to secure finance amid the credit crunch.

Typically, lenders only require valid ID, proof of employment, and a post–dated cheque, although these are usually the requirements also for a personal unsecured loan.

According to Credit Action, at the end of November 2008, total personal debt in the UK stood at £1.456 billion.

It is advisable that Payday loans are best reserved as a product of last resort, since loan interest rates offered may not be competitive by comparison to those offered for secured loans or personal unsecured loans.

Posted 27/04/2009 18:15:12