There can’t be many of us who haven’t needed to lay our hands on a large amount of cash quickly. That’s why the payday loan companies, such as Wonga and Dollar, have been doing so well these past few years.

If you’ve got a bad credit history and nothing to put up as security, the instant loans these type of places offer can seem like a godsend.

But whereas getting your hands on the cash might be quick and easy, what comes afterwards is often anything but.

With sky-high interest rates attached these type of loans, it’s easy to suddenly find yourself owing ten or more times the amount you borrowed in the first place.

Add to that a raft of stories about people being chased for repayments in a pretty dubious way by some operators and it’s a recipe for disaster.

The Financial Conduct Authority, which regulates all financial firms in the UK, has been looking at this sector for quite a while.

It has just announced it will be capping the amount payday loan companies can charge on interest, starting from January next year.

But although that’s a start, consumer watchdog organisations are warning the payday loan cap, as it’s known, is too little, too late.

They say much, much more should be done to help thousands of people who are up to their ears in debt and sick with worry about how they are going to pay it off.

Consumer champion and debt-help charity StepChange says its clients owe an average of £1,647 each in payday loan debt.

As StepChange’s head of policy Peter Tutton puts it: “The announcement is a step forward, but capping the cost of payday loans is not a silver bullet.

“Fixing the many deep- rooted problems of the payday loan market will require a range of measures.”

The average payday loan borrower takes out a staggering six loans a year, according to research by the FCA.

And in two-thirds of cases, those borrowers have other debts which they are adding to.

Half of all payday loan borrowers suffer financial distress after taking out a loan and for many, taking on another in the form of a payday loan makes their financial situation worse.

It calls on mainstream banks, credit unions and employers to help by offering people less toxic alternatives when they are in desperate need of a loan.

Peter Tutton adds: “We see too many people who have taken on more credit to try and cope with the burden of existing debt problems.

“It invariably makes things worse and payday loans are a major driver of this.”

There’s no doubt we need action from all those in charge to make sure there are safer ways for people to borrow money and we need them fast.

Most people who take out payday loans are exactly the people who shouldn’t.

Surely those in high places should be doing more to protect them?