New research has found that taking out a payday loan is a lot cheaper than taking an unauthorised overdraft from banks like Lloyds TSB.

The latest findings have found that a person who wants to borrow a sum of £150 over a 10-day period would be charged three times more interest in a Lloyds TSB current account overdraft than they would by going to one of the many payday loans online sites available on the Internet.

Lloyds TSB came out as one of the worst banks for additional interest on unauthorised overdrafts, with Halifax coming in a close second. If a person was to withdraw £150 from a current account with no balance in an overdraft, Halifax would charge £50 to their consumer instead of the £66 that Lloyds Banking Group would – if you get the calculator out that is an astounding £16 worth of difference.

All of this comes in comparison to the interest fees which are charged on usual payday loans over a 10-day period. A person who withdraws exactly the same amount of money but through one of these lenders could expect to pay just over £20 in interest, £30 less than Halifax charges when one of their consumers goes overdrawn.

Despite the criticisms, Lloyds TSB remained stoic about their interest rates. They said in a statement that the tariffs charged to consumers who went overdrawn were very clear, and that they did all they could to raise awareness to their bank customers about what to expect in the case of unauthorised overdrafts.

In addition, a spokesperson also said that using the service of an unauthorised overdraft was more convenient than a payday loan as there were no credit checks needed, saying: “A payday loan is a fixed-term loan for a short period of time – an unarranged overdraft is a variable-term loan from the bank that allows customers to make payments immediately, directly from their account using a debit card, direct debit or standing order, without having to enter into a separate new lending arrangement with another third party.”

The moral of the story remains that consumers need to check the small print of any financial commitments they are considering making, particularly if it involves making credit agreements in the current financial climate. Because of the recession, there are some people running the risk of taking much more than they can chew.

If you have the need for a Payday loan or cash advance loan, I have good news for you! Payday loans and cash advance loans are very easy to obtain. Payday loan and Cash Advance loan stores are readily available in most areas. First you must decide if you would like to talk to someone in person about your payday loan/cash advance, or if you would like to do your payday loan/cash advance business online. If you choose to see someone in person, there are Payday loan and Cash Advance loan stores in most cities.

Simply check your local telephone directory for a location near you. You may want to call and ask what paperwork or verifications you might need to have with you in order to obtain your payday loan or cash advance quickly. Most require at least one form of picture identification, your most recent check stubs and your most recent bank statement.

Each Payday loan and cash advance loan store has it's own requirements, so some may vary from another. Each Payday loan/ Cash advance loan carries a fee and an interest rate. These fees and interest rates should be very well outlined for you by the Payday loan company. There are usually set rates for set amounts of the Payday loans or cash advances. For example, a £300.00 dollar Payday loan or cash advance may carry a £25.00 flat fee. That means, as long as you repay your Payday loan or cash advance on or before the date agreed upon by you and your Payday loan agent or company, £25.00 is all you pay!

Of course there are higher fees and interest rates set in place in the event that someone should default on there Payday loan or Cash Advance loan. It is for these reasons that you should read your Payday Loan/ Cash Advance loan paperwork carefully. If you don't fully understand something, make sure you ask your Payday loan agent to explain it further. In almost any cash emergency situation, a payday loan or cash advance loan can ease your mind. If your mother-in-law is coming to visit, and you know there isn't enough supplies in the pantry to keep her fed while she's there...you may need a payday loan! If your car thinks it's time to retire, but you still have to go to work...you may need a payday loan!

If the cost of your child’s medication is more than the balance in your checkbook...you may need a Payday loan! In any cash emergency a Payday loan or cash advance loan could be the solution to your problem!