Payday Loans during Stimulus Checks
While Stimulus Checks make America’s financial hardships easier, they still don’t solve them. That is why Online Payday Loans are still popular.
Financial services opinion about Payday Loans’ development
Online Loans service COMPACOM experts say: “Online Short Term Payday Loans, along with Bad Credit Personal Loans, will not lose popularity even in spite of payments from the government”. COMPACOM managers continue to receive requests for Payday Loans from consumers even after Stimulus Checks.
Financer, another site providing financial tips and advice, also believes Americans still need funding. As the US economy is just beginning to recover after the pandemic, people still need money to cope with both regular needs and emergencies.
Leading US economists believe credit growth will pick up later, when consumer spending recovers. However, at this point in time, many people still use Stimulus payments to get out of debt and need Online Payday Loans for emergencies.
Is it possible to predict the financial situation of Americans in the future?
The Survey of Consumer Expectations was conducted to provide a rough financial picture of Americans in the future. According to this survey, the average probability of loan defaults decreased, and the financial situation of households has worsened and no improvement is expected.
However, it is worthwhile to understand that anything can happen, and many people from time to time are faced with emergency expenses such as car repairs, buying medicines, and so on. Thus, people spend half of the Stimulus payments to cover existing debts and the other half to buy groceries and other vital things. So for emergencies they continue to apply for Online Payday Loans.
Does the demand for Online Payday Loans change during Stimulus Payments?
In order to find out if there are any changes, we studied the statistics of Google Trends for the request “Payday Loans “. Having studied Payday Loan popularity during the first, second and third Stimulus Checks:
- 1st Stimulus Check in April 2020
- 2nd Stimulus Check December-January 2021
- 3rd Stimulus Check in March 2021
After examining the data, you can see that after people receive the Stimulus Check, the need for a Payday Loan is reduced. However, an important detail is that for some time after the government’s financial assistance, the rise in popularity of Online Payday Loans has been on the rise again. Thus, it once again confirms that Americans still need additional financial assistance to get out of debt.
How long the Stimulus Check funds last?
As a rule, about $1000 – $1500 is needed for life for a month. However, how long can Americans cover living expenses when they receive $ 1200 or $ 1600 Stimulus Checks?
The fact is, most surveys claim that 61% of the Stimulus Check only lasts 3 months.
About 21% of people spend payments in less than a month, 26% – within 1-3 months, 13% – within 3-5 months, and about 40% of people find it difficult to answer this question.
How do Stimulus Checks affect consumers?
In fact, Stimulus Checks affect consumers’ finances. When Americans know they can count on more government money, they don’t pay enough attention to their budget and spending planning. Thus, people are wasting money when they realize they will receive another Stimulus Check.
Thus, people no longer try to make more money or save what they already have, as they get used to payments rather quickly. Thus, when Americans are faced with a difficult financial situation, they again apply for a Payday Loan, since all the Stimulus money has already been spent.
Bottom Line
Despite the fact that Stimulus Checks helped the Americans with some difficulties, the payments still have not solved them. This is due to many reasons, starting with the fact that many people have debts, and ending with the fact that Americans do not know how to distribute finances sensibly when they know that they will receive government help again. Thus, a decrease in the popularity of Online Payday Loans is not foreseen.
