Nov 03, 2012 Quinn Thomas
In a difficult economy, many consumers cast out for options to assist with getting by. Short term loans allow customers to fill an immediate need with funds that can be paid back at a later date, presenting more opportunities for personal success. A number of different loans like this exist, and depending on personal circumstances, one or more may be the best option. Market problems continue to plague employers and their workers across the country, making these options more popular than previously seen.
Finding new usesSince the beginning of the recession, many different kinds of applicants have found a haven in short term loans, helping them overcome incidental issues and make it to through the next pay period without any loss of functionality. These resources have been widely available for some time, but over the last few years, new varieties of short term lending have become more popular. In Virginia alone, more than 125,000 car title loans have been issued, according to Reason Online. The value of these short term loans is over $125 million with a majority of successful repayments being recorded on these balances. That shows how successful these resources can be for eligible lenders. All they need to provide is a vehicle as collateral and they could have access to essential funding within only a few business days. The source also wrote that requests for such options have only increased over the years.
More supply to meet demandIn response to these requests, more banks and other lending institutions have raised the volume of offerings they have to cater to consumers. Despite some shaky numbers regarding defaults, there has generally been positive feedback from the use of such funding options: Reason wrote that, of the tens of thousands of short term loans issued to consumers in Virginia, only about 15 percent of them resulted in repossession. Dallas News further stated that many major entities including Wells Fargo and U.S. Bancorp had increased their short term leasing capabilities to offer more of these options to their customers. Short term loans and car title loans are currently among the most popular options, the source stated, reinforcing the idea that quick access to funds is still a highly sought-after option for many businesses and individuals.