While consumer confidence waxes and wanes, at least one portion of the financial sector is enabling consumers to continue making purchases and keep up against debt. It is the payday loan industry – to be specific, the online payday loans industry – that provides working individuals with financing options.
For millions of working people in the U.K., cash access had been restricted in recent years due to the global recession. This continues to be the case, resulting in strapped finances in a large percentage of households where two incomes have been reduced to one.
Quick quid access is the name of the game. These are online payday loans (example: the U.K.’s own QuickQuid) where the money lands in your bank account in one hour. The time-pressed working person who ten years ago (before the advent of truly accessible online payday loans) would not have gone to a bricks-and-mortar payday loan store can now sign onto the lender website to procure up to £1500 in about five minutes of time on a personal computer.
The borrower might even access this kind of quid whilst on holiday through a mobile device, then access the cash through a bank ATM.
Where does this cash find its way back into the economy? There are several common applications:
- Quick term financing of a purchase or to establish a lease on property or goods.
- Keeping current in bill paying – making due dates so as to bring up a credit score.
- Purchase tickets for travel, when last minute occasions demand a quick trip.
- Emergency purchases or charges, such as when an automobile needs servicing.
According to one economic analyst, these loans are a lynchpin in the economy in that they fix a timing problem for people who lack other forms of credit access. When individuals, working people in particular, can keep bills paid or take up opportunities for investment or travelling at optimal moments, the economy is brought into better shape than it would be otherwise.Google+