I run a personal finance website and on this site I have affiliate programs and also direct access enquiry forms.

An affiliate program allows me to display links to other websites and earn commission when someone clicks or applies.

Like this: Virgin Credit Card – 0% for 16 months 2.98% fee (typical 16.6% APR)

The direct access enquiry forms send enquiries direct to qualified and waiting advisers.

In the past there were virtually unlimited marketing budgets in the finance sector and there were an abundant supply of affiliate programs for loan products.

Now there are very few.

An emerging loan market in the UK does however seem to be advertising everywhere and marketing their offerings through affiliate links.

These are Payday loans. Loans designed to give you emergency cash until you are paid.

They are not designed for long term borrowing. The interest rates are very high (see Silly Apr).

The reason the interest rates are high is so the lender can cover their costs and make the charges even for everyone.

They could charge a fixed fee but that wouldn’t be fair on people only borrowing a little bit.

If the rate was low and the loan was paid off in under a month they wouldn’t make any money.

But, if the loan is not repaid in a month or two months or six…. The costs are high.

I can see a place for this type of lending because there probably are some people who would have no other option.

However, people who have no other option because they are already stretched could find themselves adding to the problem.

Because I am of the mind that a lot of people already in difficulty will be looking at these products I have so far chosen not to advertise them very prominently.

I know an elderly couple who are struggling to clear an emergency loan and a single mother of two who got into some difficulty with one.

I would be interested in peoples opinions?

Are they a necessary evil or are they just going to add to the already mounting public debt?