January is traditionally a period when people find it tough to make ends meet. The excesses of the festive period often leave bank accounts in poor shape, credit card bills frighteningly high, and plenty of vying demands on whatever spare cash is unspent. It’s not surprising then that for many of us, our January finances are a circle that just can’t be squared, and towards the end of the month money just dries up.

If you’re lucky, your overdraft may be able to take the strain, letting you postpone paying off some of your expenses until your budget settles down again later in the year. Or, you might have credit on your credit card that you can utilize to bridge the gap, although withdrawing cash on cards is notorious for being expensive.

What can you do if neither of these options are available?

The answer is, for some, to take out a payday loan. While these loans are relatively pricy, they are fast to arrange and are obtainable by almost anyone who has a regular job and a suitable bank account, with credit rating not normally being an issue. Cash advances are usually for a small amount, a few hundred or so, and are taken out over a time period of weeks rather than months or years. A flat fee of around 20% of the sum you borrow is applied, which you pay when you repay the debt on your next payday.

Most fast cash loans also have the option of being renewed or extended, so that you can put off paying back the loan for a further month, although at the cost of a new set of costs. While this is conveniant for some, it is also hazardous: it can be all to easy to get stuck into a spiral of finance which is a serious drain on even the most healthy of budgets. The expense is also an issue, as wage advance loans are very pricey when compared to virtually all other forms of borrowing.

Nonetheless, if you find yourself in difficulties come the end of the month and can’t make ends meet, then a payday loan could be a fast and easy answer – just make sure you understand and can cope with the risks involved.