Payday Loans Are Being Used More for Necessary Expenses

It was originally thought that payday loans were exclusively the purview of those who wanted some extra shopping money or who could not manage their funds well enough to pay bills any other way, but it is increasingly obvious that more people are using these loans for things they need and not necessarily on a consistent basis.

Research from the Debt Advisory Centre shows that almost half of those who took out a payday loan within the last year did so to pay for an essential expense. That expense ranged from a one-time cost, such as car repair or maintenance to monthly bills and utilities. Most of the respondents for the survey said they only used such loans infrequently, not as a repeated crutch to pay for the same expenses month after month.

That’s a far cry from where the industry was at before, where most of those who use payday loans did so out of necessity month after month or did so as part of frivolous spending. Various consumer agencies and advocacy groups have long told the public that payday loans are not a service that should be used for anything other than temporary debt relief and only used infrequently. Payday loan companies offer customers this same advice.

Payday loans are taken out more often during the holidays or on special occasions, such as birthdays and celebrations. But once again, this is a healthy way to use the services, as such loans are only used on a short-term, one-time basis. This research shows that most people are using payday loans as suggested and not simply relying on them to keep them afloat financially from month to month.

Part of this change likely has to do with a slowly recovering global economy. As wages increase, the price of goods decrease and equilibrium starts to be restored, people are able to save more money and spend less of what they earn. This is leading to smarter spending and better use of payday loans.

These loans can be excellent tools for helping people accomplish things financially that they would not be able to do otherwise, but it is important that consumers understand what the loans entail. It seems that many consumers do, and this is helping both the consumers and the payday loan industry to thrive. It helps the consumers in ways already covered here, but it helps the industry by ensuring it does not require closer scrutiny. New restrictions have already been applied to marketing and lending terms, and the efforts to make the industry a better place seem to have paid off.

The new regulations have also made consumers more aware of what payday loans entail and how to better use them. When consumers start treating payday loans as short-term financial boosts, then they can help make the industry stronger by giving it a better reputation. We are already seeing the effects of this change, and it is only looking better and better for the industry moving forward.

Payday Loans Rescue Striking Workers

Prison officers in the UK are using payday loans to help them get by through troubled times. These workers are going on strike, says Steve Gillian, the Prison Officers Association’s general secretary.

31,100 members of the association are struggling to make ends meet as they try to reach an agreement with the NHS over wage increases. The NHS is giving some of its workers a 1% pay increase, but not all. The striking workers are calling for a blanket increase to affect all workers.

They contend that they are dealing with hard economic and financial conditions, and they are having to resort to uncommon means to get by. Nearly 80% of the union backed the strike, making for a huge loss of productivity for the UK prison system.

Those worried that they will be in danger because of unattended or improperly cared for prisoners need not worry though. Gillian said that his union is responsible and would not put the public at risk. They know what needs to be done to keep the public security, and they are only taking such action as to make their case known to NHS. They are not taking unnecessary risks or forgoing any security measures that would harm the public.

The union has already made arrangements to have minimum cover provided for all prison systems. They ensure that the prisons are guarded and taken care of, but that only the minimum requirements are met. This ensures continued public safety while still allowing them to make their case before NHS.

The union has already made it clear that strike action is not what they were hoping would be required to get NHS’s attention. They see the strike as a measure of last resort and would like to resolve the problem in an agreeable manner. But they also realize that they must take action to get what they believe is rightfully owed them.

For now, payday loans and other such financial measures are helping to keep the striking workers afloat and paying their bills from month to month. They hope the conflict will be resolved shortly and to their satisfaction so that they can get back to their lives and to serving in the prison at their full capacities.

The striking workers are hoping not just for a pay increase for this year, but also the same 1% increase for the following year. As the union has made its case before NHS, it is up to NHS to take the next step and determine where the conflict is headed.