Journalists, consumer groups, and outraged individuals continually criticize payday loans and the often shockingly high APR rates that come with them. And yet, millions of people continue to use these loans in spite of the harsh disparagement. What explains the enduring popularity of payday loans? More importantly, are payday loans really as bad as they are made out to be?

• The Good

Perhaps the greatest appeal of payday loans, also called cash advances, is their convenience. Regardless of whether you have a horrible credit rating or function on a low income, you can easily secure a payday loan from websites like MyPayDayPlace.com. Most providers only require proof of employment and a valid checking account. Some payday loan providers are accessible online 24/7 and are literally just a click away. They are also incredibly simple; you take out the amount you need, pay it back by a certain date, and incur a specific percentage of interest. As long as the loan is paid back on time, the process is extremely straightforward and transparent. Get the best strategy in place and you can use it to your benefit.

• The Bad

Unfortunately, the critics of payday loans aren’t just weaving tall tales. There are some distinct disadvantages to using payday loans for microcredit. The relative convenience and simplicity of securing these loans can lull lenders into a false sense of security; they end up borrowing more than they can pay which marks the beginning of their descent into debt. Then of course, there’s the astronomical annual percentage rates (APR) for payday loans which can be as low as 200% or as high as 5,000%. Clearly, customers must pay for the convenience and accessibility of payday loans.

Despite these disadvantages, we aren’t likely to see a major decline in payday loans anytime soon. Not as long as they continue to provide a viable financial option for people who are turned away from traditional lenders.