Mar 17, 2014 Quinn Thomas
In the month after the holiday season, consumers generally curb spending. But, now that we are in March, expenditures are picking back up, which could spark short term lending demand.
U.S. consumer spending increased more than expected in January, as outlays on services hit the highest level since late 2001, according to the U.S. Department of Commerce. Overall, expenditures were up 0.4 percent, compared to a 0.1 percent bump in December.
Household wealth also reached a record high in the fourth quarter of 2013, with a $2.95 billion bump to $80.7 trillion, the Federal Reserve said.
With economic factors putting people in a positive position to spend money, it wouldn't be a surprise if short term lending demand jumped as well. People who increase expenditures are putting themselves at risk if unexpected expenses arise.
For example, if someone's car breaks down after buying a new home entertainment system, they may be in a position where monthly expenses are hard to cover. A short term loan can eliminate this stress, as funds are provided quickly to help ensure all bills are paid on time.