Feb 24, 2014 Philip Burgess
Thankfully, there aren't a lot of people who are currently in dire straits financially. In a post-global recession United Kingdom, the economy is picking back up and consumers' fiscal situations are beginning to stabilize. That's a far cry from where we were just a few short years ago.
Back during the height of the financial troubles, there were times when families weren't always sure if they'd be able to put food on the table in the coming weeks, never mind deal with student loan, rent, utilities and car bills. One of the worst parts of it all - other than the inflation and nationwide layoffs, of course - was the fact that high street banks were often of little or no help. During hard times, it tends to be impossible to secure a traditional loan.
It was during these years that consumers across the U.K. turned to something else - short term lending. These companies were almost always accommodating and allowed people who were struggling and might not have had the best consumer credit scores as a result to take out loans to stay afloat.
In the years since, many lawmakers have taken a hard stance on the future of this industry, now that the sector isn't virtually necessary for the survival of a multitude of households. However, that doesn't mean consumer preference has waned as much.
People want short term loans
While individuals might not need these alternative finance options the way they did between 2008 and 2012, many have become accustomed to the advantages of such products and seek them out even now that high street banks are once again loosening their purse strings.
For instance, The Huddersfield Daily Examiner reported that recent information published by R3 revealed that 6 per cent of adults in Yorkshire are interested in taking out a short term loan in the next six months, which is double the amount who claimed the same in June 2013. While the source did note that demand has been cut in half when compared to April 2012 numbers, the economy is in a better spot now.
As in any sector, significant demand should be met with more product. Because consumers are well-educated about short term lending services and lenders are more than willing to teach best practices to advance clients' financial positions, loans shouldn't be contested by lawmakers. If the people need and/or want these loans to be able to stay current on bills while contending with unexpected expenses, they should have all possible opportunities for advancement.