Loan industry may work at slower pace

Since the beginning of the 2008 recession, many consumers have turned to short term lending options to cover unexpected expenses. Because of the large number of layoffs during the time period, many had to search for alternative means of financing, though those who were able to retain their jobs came out in droves to take advantage of short term loans when an emergency occurred. According to the recently released IBISWorld industry report, the short term loan industry has been successful since 2008. The report found that between 2007 and 2012, the average industry revenue has increased by approximately 2.5 percent annually, eventually reaching $10.1 billion in total profit. Because the nation is pulling itself out of the recession, many experts believe the positive growth of the lending sector may slow through 2017. The study predicted the economic trends of banks and the state and federal governments will still facilitate growth, just at a more measured pace. This may cause a number of companies to close their doors, so lenders may want to consider moving to a location where there is more demand for fast cash. It seems, however, that for the near future, short term loans will continue to be a popular way to fund unforeseen expenses. A recent Think Finance report noted a large number of individuals between the ages of 18 and 34 who have relatively high-paying careers are using the loans to cover emergencies. Over 20 percent of those who make between $50,000 and $74,999 have borrowed from short term lenders.