A poor economy could lead to increased reliance on short term lending

The past couple months have seen consumers feel extra confident in the United States' economy, but that sentiment has retreated in early July.

Should the economy begin to stumble, Americans might see their personal financial situations worsen, potentially leading to increased demand for short term lending to ensure they keep up with their essential bills.

One sign that economic confidence is slowing is Gallup's Economic Confidence Index, which fell to minus-12 in the week ending July 14 - the lowest reading since late April. The main reason for this dip was Congress' failure to avoid the budget sequestration.

Additionally, retail sales came in at a lower rate than expected in June, which could be a sign that consumers are pulling back on spending. According to the U.S. Department of Commerce, sales at retailers sales increased 0.4 percent, lower than the 0.8 percent gain that was projected by economists surveyed by Bloomberg.

As economic growth slows down, some Americans could begin to struggle with their finances, which might lead to them falling short on their bills. Short term lending can be invaluable at these times, as this form of financing can help ensure they don't fall behind and experience significant damage to their consumer credit score.