The debate about Credit Cards vs Pay Day Loans continues and there are very good arguments for both sides.

The APRs for both are high - but this really isn't the issue as far as I am concerned. APR is really only relevant if you are going to keep the borrowing for a length of time.

So, if you need £400, as an example, then borrowing on a credit card and paying it back within the month SHOULD be free IF you have 0% on purchases - many credit cards do not offer this so it is important to check this out.

If you borrow £400 as a payday loan you will typically pay back about £500 - so about 25% additional borrowing.

The key here is the ability to repay the loan. People who borrow on credit cards very rarely pay the full amount back every month - it is too easy not to. Then the interest you build up is huge. On some credit cards with a £3000 balance if you make just minimum payments it will take 11 years to pay back - interest VERY high!

A payday loan will be set automatically to pay back when you next get paid - this ensures the debt is paid and cleared and you no longer have to worry about it.

Has this helped the argument? You need to decide for yourself which will work best for you as peoples circumstances are different when it comes to payday loans and credit cards.