Does recession affect the popularity of payday loans?

Payday loans are very popular because of a number of advantages they are associated with. First of all they are short term loans availing a certain amount of cash very quickly. There are traditional way to get such loan or through internet. The money payday lenders provide you with can be used for anything you want, but initially such loans were designed to cope with financial difficulties, to prevent the bills from growing. They are short term loans which means that they must be paid back soon after you get your cash (usually 30 days; the sum is deducted from your checking account within the next payday). In case of late payment the interest rate is likely to increase. It may result in a very significant debt. For you to treat this financial tool with all your seriousness keep in mind APR of these loans. The Annual Percentage Rate of these loans can be as high as 780% it alone shows how much you pay back.

In the circumstances of the financial or "credit" crisis payday loan is getting less and less popular. Why does it happen? As a matter of fact it may seem strange, as in case of crisis people face more difficulties and are forced to cope with financial crunch. People are expected to use payday loans more often when a crisis occurs, but some things hamper them to do so logical steps.

The reason for people to refrain from using payday loans may rest in basic requirements of payday loan lenders.

1. Unemployed cannot qualify. During crisis many companies make redundant a lot of people. The jobless need money to cope with their problems. However, they cannot count on payday loans, as a stable income is one of the mail criteria to be approved and given cash.
    
2. Not everybody has checking account. But checking account is a very important part of your financial development. Checking account opens the door to payday loans.
    
3. Monthly salary should be at least $1200