HE payday loan companies which advertise so regularly on TV portray themselves as friends in need, ever ready with a bit of cash to tide you over.

But many charge truly shocking interest rates. And what this means is that if you don’t pay back your loan on time, you can quickly find yourself saddled with a huge debt.

A new report on the way payday loans are affecting the lives of hard-up people in York includes a real-life example of just how quickly such debts can get out of control.

It involves a cleaner working 55 hours a week on a ‘zero hours’ contract. Despite already being in debt, she took out a £1,000 payday loan, was unable to make the repayments – and was hit by a hefty penalty.

Now, with her finances in a hopeless state, she is left relying on foodbanks and the generosity of friends to survive.

The report has been produced by Advice York – a partnership which includes York CAB, Age UK and the York Foodbank. It warns that more and more people in the city who have taken out payday loans are now struggling with debt.

There is nothing illegal about payday loans, but you do need to be aware what you are getting into. Often, they don’t offer the best deal. But people turn to them because they think they have no other option, says report author Sophie Tragheim.

Well, you probably do have. So please, if you really are struggling, ask for advice from an organisation such as the CAB or Age UK first.

They have advisors who can help, and may be able to suggest cheaper alternatives than a payday loan company you saw on TV.