The first few weeks after the Christmas break can be tough in any year. With the continuing credit crunch biting harder than a January wind, this year has been especially tough for many people. Many people who receive monthly pay cheques will also have the added disadvantage of being paid earlier in December, extending the time between salary payments by up to a fortnight.

This is where a payday loan can help. Payday loans are small loans paid out against your next monthly wages and can offer a quick alternative to applying for a conventional loan. As banks are less willing to approve loans at the moment because of the credit crunch, alternatives that offer a short-term solution are a useful fallback when there's too much month left at the end of the money.

If you know you have direct debits due in the middle of the month and your account is suffering a post-Christmas hangover, a payday loan could act as a top up until your wages come through. Applications for payday loans are based on certain criteria and, if you match these and are sure that you will be able to cover the cost of the loan with your salary, without leaving yourself short again, then this is a good option. You will need to prove that you meet the minimum age requirement, are in full-time employment, have a bank account into which your wages are regularly paid and which also has a debit card, and that your credit check does not disclose you as a high risk applicant.

The amount offered is generally based on the amount that you earn and how much you can afford to pay back. As a result, payday loans are usually relatively small and manageable but, as stated earlier, you must be sure that paying back the loan from your next wage will not leave you in the same position next month.

Payday loans do also carry interest charges, so you will need to factor this into your calculations before you apply. But if everything seems ‘do-able', a payday loan can be a lifeline at a time when money is tight. By ensuring that direct debits and bills are covered, you can avoid expensive late payment penalties or bank charges, reducing your costs and maintaining your credit rating. They are quick and easy to apply for, and the funds (if you are approved) will normally be deposited in your account the same day you apply.

Payday loans, it has to be stressed, are a short-term answer to financial worries, so if your plans are longer term, you may want to look at other options.

Payday loans act as a good option to fall back on in the event of a shortfall month – which the early months of the year often tend to be. Using a payday loan to cover unexpected household or car bills or even to avoid overdraft charges can mean that your year starts with a little less stress and financial worry.