Jobless rate doesn’t drive down payday loans
Many people are keeping a lookout for signs like this.
Given the unemployment rate and the new rounds of job cuts being announced daily, it’s a bit surprising that the number of people who collect payday loans continues to rise. People collecting unemployment insurance typically don’t qualify for payday advance loans.
Payday loans help in credit crunch
More middle-income families are collecting payday loans nowadays. It used to be that mostly people with low incomes or bad credit utilized payday loans. Now, with “bad credit” taking on a whole new meaning, more people need extra cash to make ends meet. Personal loans and credit cards aren’t an option for as many people anymore.
Big layoffs equal big unemployment
Company: Job Cuts
- PNC bank: 5,800
- Huntington Bank: 500
- Liz Claiborne: 725
- King Pharmaceuticals: 760
- Rockwell Collins: 600
Just like any other day during the last few months, several companies announced widespread layoffs today. Between five companies a total of 8,385 jobs are being cut. This, of course, only scratches the surface of the layoffs announced today. The box to the left shows the companies and number of jobs being cut for each. Those numbers only include the number of U.S. jobs each company is cutting.
Banking on job cuts
So I’ve been a little sneaky, and I saved the biggest number for last. Including the PNC layoffs announced today, financial institutions have announced a total of 312,498 since August 2007. This number includes all jobs worldwide that have been cut or will be cut over the next couple of years. Bank of America and Citigroup, which have both accepted government bailout money, are among the companies making big cuts.
Outside the U.S.
As indicated by the banks making job cuts worldwide, many other countries are affected by the economic crisis. The unemployment and number of payday loans lent are also rising in many European countries.
Related articles
- Payday Loans – Pros and Cons (mortgagesloans.suite101.com)
- Can Wall Street Find a Safer Way to Package Assets? (time.com)
- New unemployment claims hit 26-year high (crooksandliars.com)
- Welfare Rolls Are Not Going Up. Why? (crooksandliars.com)
- Brother, Can You Spare a Job (dailykos.com)
- 35,100 O.C. jobs lost in past 12 months (ocbiz.freedomblogging.com)
The job losses have gotten completely out of hand. There should be some sort of tax rule where you can write off a portion of payroll during a recession so people can keep their jobs – not to mention how many jobs could be saved by trimming executive salaries and bonuses. I know that some job losses were going to be inevitable, but I highly doubt that a good portion of the layoffs so far could have been avoided by being creative, and thinking about 400,000 workers instead of 4 or 5, that may not have doing that great a job in the first place.
Payday loans are sometimes necessary. With the way the economy is going, people much rather save their money than to spend it. And since the economic system is currently at a very uncertain state, unexpected financial events probably occur more than usual. People are either getting laid off, have been on a job hunt for months, or having their hours cut because of a diminishing business output. When that unforeseen financial event occurs, don’t resort to an overdrawn account, bounced checks or other penalty charges. Obtaining a payday loan is probably the best option available.
The whole situation is sad. Its scary to think its just beginning. It effects everybody and everything