Payday Loans Are a Viable Option as Industry Giants Falter

Payday Loans

Consumers are looking to payday loans as funding options to get through the volatile economy. Lenders are wary of extending credit, thus closing the doors on people who normally would have looked to them for relief. Payday loans have different lending structures and timelines, so they can be more reasonable options for people in immediate need. Normally with a payday loan, the applicant needs to be at least 18 years old, have a job and an active bank account. With these three requirements, he or she can apply for a payday loan and if qualified, find the funds they need. Working mother Amber Granier of Millbrook, Pennsylvania stated, “Payday loans are becoming a great resource for me. I’m a single mother and sometimes bills pile up, or I have a sudden unplanned-for expense. Payday loans have helped me out numerous times in the past, and I’m counting on them to help me in the future.”

Online giant cutting jobs

Yahoo will be laying off between 600-700 workers at the end of Q1. To insiders, this did not come as a shock. Analysts stated that the internet giant would suffer during the beginning of 2009 and most likely employees would be the ones on the chopping block. For the third time in the past year, the company has looked to lay-offs as a way to save money. In February of last year 1,000 people were let go and another 1,500 later in the year.

The company earned over $118 million in Q1 of 2009. To the casual observer that may seem like a lot, however in the grand scheme of their history, that figure was a decline in income of 78% from the previous year. In addition, their revenues are about $50 million below projections, making certain the beginning of 2009 is not the time they will revive.

When large corporations like Yahoo are feeling the pressure of a struggling economy, it’s safe to say that everyone is falling under the strain. The company is not seeing an end to their problems any time soon, which can also indicate that everyone will be affected adversely.

On the horizon

The change in economic climate is difficult to predict. The time frame it will take for change is equally as vague. With industry giants in auto manufacturing, internet marketing and banking all suffering huge blows by the economy, small businesses and individuals are equally hampered. Small businesses are being forced to look into installment loans as a bailout. Consumers are looking to payday loans as an option. Regardless of size, all businesses and people are being dramatically affected by the recession.

Is there hope?

There is hope for the future, so analysts say. It may be a long time coming, but the banking and auto industries will level themselves. It may mean that some industry giants close their doors, while others partner up with each other for survival. The same restructuring has to happen in every home in America. People have to look at their funding options to carry them through until the recession runs its course. While banks and the auto companies are looking to big government bailouts, Americans are looking to tight budgets and payday loans to help them sort through their financial strains. Hope is on the way, but in the meantime, everyone needs to be vigilant about money.