With the rise in economic challenges in the country, more and more people are expected to take resort to short term loans, especially the payday loans in 2016 and even after that. Based on the huge increase seen in 2015, towards the last month, which is probably due to the festive and holiday mood, the experts and analysts forecast that there will be further increase in the demand of cash loans in the coming year. An increasingly large number of people are nowadays aware of the existence of such loans, whether online or from the brick-and-mortar shops and their knowledge on such loans is influencing them to take resort to such loans which are more like saviours during financial crisis. There are valid reasons behind the popularity of payday loans. As their application process is easy, the borrowers get the ease of applying them either over phone or online and the entire process of taking out payday loans takes about 5 minutes. Criteria need to be met in order to be eligible to take out the loan and the best thing about receiving these loans is that you can get them even without a stellar credit rating. The lucky people who get approved find that they receive the loan amount in no time at all. The banks and the traditional lending institutions warned that majority of the households are in a precarious situation which is due to the climbing levels of debt due to the low costs of borrowing such short term loans. Household debt, in relation to household income has reached a record high level and most individuals need to arrange their debt and money in such a manner that they don’t take on more debt than what they can pay. This could leave them at risk during any financial odd situation which they come across. However, although there is a huge demand for payday loans, cash advance loans should always be used in a responsive manner so that the consumer doesn’t find himself in the vicious trap of payday loan debt. The borrower shouldn’t feel the urge to take out yet another loan in order to repay the first one. When borrowers have a short term financial crisis, payday loans benefit many but it is good for your financial portfolio as long as you’re able to repay the loan on time. When a consumer takes out any kind of loans, be it long term loans or short term ones, responsible borrowing is the key. Unless you’re responsible about the loans that you take out, you can never repay on time and avoid incurring debt. As 2016 will see a soaring demand of short term loans, you have to be watchful enough about managing your finances so that you don’t incur debt in the long run. High interest debt can have a damaging impact on your credit score and can mar your ability to take out further loans. Hence, stay aware of the way you manage your finances and repay what you owe.