Payday loans and other similar personal cash advance loans are starting to become a main stay for many of us who end up in need of quick cash.
Why? It's got to do with the mix of a poor economy, higher costs simply to live (pay rentals, mortgage, resources, gas, etc) and the undeniable fact that banks and mastercards - who use to be the go to source for personal loans - are just not lending.
In this economy, where the focus at this time is about the unwaged, is really about the under-employed. Those that have been laid-off from good paying roles only to be employed in positions that pay minimum wage. Those recent college graduates who can't find work on scale with their schooling and skills. Or, the ones that should have retired by this point but are being made to work longer in roles that pay less then they are use to.
Costs simply to live are rising quicker than our economy or wages can stay alongside of. Actually according to USInflationCalculator.com, 2011 saw inflation (on average for the entire year) elevate by 3.2% - the biggest increase since the latest recession began and the 4th largest increase in over a decade. Further, 2012 is shaping up be another big year for price raises. Through August of 2012, inflation increases are averaging some 2.16% and is anticipated to extend in the last quarter of the year.
Now, 3.2% and 2.16% may not appear like a lot but given the incontrovertible fact that average salaries have decreased or with people being made to take minimum wage roles, they just don't have the income to cover their basic living expenses let alone any type of cost (inflation) increase. Finally, the numbers above don't take the price of gas into their equation. But , gas costs have doubled over the last 4 years and are one of the most vital costs that most working people have today.
Think about it this way. The U.S. Census estimates that the regular person commutes about 16 miles a method to work or 32 miles per work day round trip (know this number is slowly rocketing as more folk have to go further out to gain employment).
If the average MPG is 22 Miles per gallon (according to TrueCar) and the average price of a gallon of gas is $3.83 (9/22/12 - per the Washington Post) that means that the typical person would spend about $5.57 per day in gas alone or $120.70 per month.
Note: this doesn't take into account any idle time at stop signs, traffic lights or in traffic generally. While the average person may drive 16 miles a way to work, their commute time is around 26 minutes which does further increase fuel usage.
Given an absolute minimum wage job at $7.25 per hour, if you compare fuel costs to after tax income, then gas costs is equivalent to roughly 11% of somebody's take home revenue.
Commute longer and your costs only go up.
Lastly, banks desire your deposits (your meager payslip being at once deposited in their bank vaults) and they would like you to have or use tons of their products so that they can fee you for them but they will not give you a personal loan. They claim your credit is too bad. But , if it is not, then they claim your income is too low. But , if that isn't also , then they come up with some other stupid, unjustifiable reason. End, result, you cannot get an individual loan from a bank to save your life.
But , what happens when life crops up and you have an immediate fiscal emergency?
Doctor's bills, higher then predicted household bills or automobile repairs. What about bank costs when a check bounces or drafts your overdraft protection. Those costs could cause more harm (cost more) then the bills you are endeavoring to pay in the first place.
If you can't go to your bank for help, where can you turn?
Payday loans and similar private cash advance loans are stepping in to fill the gap that banks are leaving by not lending.
Why? It's got to do with the mix of a poor economy, higher costs simply to live (pay rentals, mortgage, resources, gas, etc) and the undeniable fact that banks and mastercards - who use to be the go to source for personal loans - are just not lending.
In this economy, where the focus at this time is about the unwaged, is really about the under-employed. Those that have been laid-off from good paying roles only to be employed in positions that pay minimum wage. Those recent college graduates who can't find work on scale with their schooling and skills. Or, the ones that should have retired by this point but are being made to work longer in roles that pay less then they are use to.
Costs simply to live are rising quicker than our economy or wages can stay alongside of. Actually according to USInflationCalculator.com, 2011 saw inflation (on average for the entire year) elevate by 3.2% - the biggest increase since the latest recession began and the 4th largest increase in over a decade. Further, 2012 is shaping up be another big year for price raises. Through August of 2012, inflation increases are averaging some 2.16% and is anticipated to extend in the last quarter of the year.
Now, 3.2% and 2.16% may not appear like a lot but given the incontrovertible fact that average salaries have decreased or with people being made to take minimum wage roles, they just don't have the income to cover their basic living expenses let alone any type of cost (inflation) increase. Finally, the numbers above don't take the price of gas into their equation. But , gas costs have doubled over the last 4 years and are one of the most vital costs that most working people have today.
Think about it this way. The U.S. Census estimates that the regular person commutes about 16 miles a method to work or 32 miles per work day round trip (know this number is slowly rocketing as more folk have to go further out to gain employment).
If the average MPG is 22 Miles per gallon (according to TrueCar) and the average price of a gallon of gas is $3.83 (9/22/12 - per the Washington Post) that means that the typical person would spend about $5.57 per day in gas alone or $120.70 per month.
Note: this doesn't take into account any idle time at stop signs, traffic lights or in traffic generally. While the average person may drive 16 miles a way to work, their commute time is around 26 minutes which does further increase fuel usage.
Given an absolute minimum wage job at $7.25 per hour, if you compare fuel costs to after tax income, then gas costs is equivalent to roughly 11% of somebody's take home revenue.
Commute longer and your costs only go up.
Lastly, banks desire your deposits (your meager payslip being at once deposited in their bank vaults) and they would like you to have or use tons of their products so that they can fee you for them but they will not give you a personal loan. They claim your credit is too bad. But , if it is not, then they claim your income is too low. But , if that isn't also , then they come up with some other stupid, unjustifiable reason. End, result, you cannot get an individual loan from a bank to save your life.
But , what happens when life crops up and you have an immediate fiscal emergency?
Doctor's bills, higher then predicted household bills or automobile repairs. What about bank costs when a check bounces or drafts your overdraft protection. Those costs could cause more harm (cost more) then the bills you are endeavoring to pay in the first place.
If you can't go to your bank for help, where can you turn?
Payday loans and similar private cash advance loans are stepping in to fill the gap that banks are leaving by not lending.
About the Author:
Sharon Lum is a specialist for foreigner loan Singapore, and have vast experience coping with folks of all nationalities in monetary requirements
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