Prosperity is Relative and Cash Advances are Still Good Choices

How are Americans coping?

Americans are coping with the recession by cutting back their spending, looking to cash advances and selling off unneeded goods. Regardless of income, people are reacting to the recession and proactively trying to keep themselves afloat.

Prosperous takes on a cloudy meaning

The Parnell family of Sevierville Tennessee makes over $250,000 a year. By all accounts they are one of the “prosperous” families that in former times would have been thought of as immune to financial woes. Looking closer at their lives brings a new perspective. Both husband and wife work, five and seven days a week, respectively.

They drive an old vehicle and live in a moderate priced and sized house. They certainly don’t live like the “prosperous” theoretically do. The Parnells stated they are “not complaining but the reality is Obama may call us wealthy, but I thought we were just good old middle class. Our needs are being met, but we don’t have a load of cash to cover wants.”

Meet the Parnells

The Parnells are like a lot of American families. They are just above the “over $250,000 income” tax-bracket Obama drew and therefore will see higher tax rates and lower deductions. The President added, “We’ve made a clear promise that families that earn less than $250,000 will not see their taxes increase by a single dime.” The Parnells are the result of a dual-income home and though they do hit the quarter-million mark, they are not the affluent, recession-proof family that numbers suggest they should be.

An unclear future

Like most other parts of the market, people will have to take on a “wait and see” attitude until they know how everything is going to play out. The banking industry, the loan situation, the housing disaster are all up in the air. The government hopes there is a clear end to the recession, but no one knows what state the economy will be in when the dust clears, or when it will happen.

Families with incomes well-under that of the Parnells will have to be even more vigilant of their income. Many are already looking to new ways of getting through their monthly bills. Cash advances are becoming more popular. These are short-term loans in which lenders extend up-front cash to eligible applicants, to tide them over until their next payday. The requirements are very simple; applicants need only be over 18 years of age, have a steady job and an active bank account to apply. These types of loans are very simple and convenient. If a person qualifies, they have the cash they need in their account within a matter of a few days.

Other families are getting even more creative, using merchandise trading as a way to cloth growing children. In Madison, Wisconsin, a growing number of church organizations focused on trading clothing are cropping up. The requirements are that the clothes fall in the category of “gently worn”, but then they are exchanged to other parents.

Mother of 5, Anne Smithson says, “When you have 5 children, all under the age of 9 it’s important to put some effort into saving money for clothes. They outgrow everything within a few months and I can’t afford a new wardrobe multiple times throughout the year.” Church groups are forming a communication railroad, hosting “merchandise sales” and more and more citizens are coming in to find what they need.

In the end

In the end, the 2008-9 recession is a chapter in American society that no one knows the ending to. Americans, regardless of their tax-brackets, have to do the best they can at budgeting and making ends meet. Some families are looking to general restructuring to meet bills, some are looking to cash advances and merchandise sales houses. Regardless of what method is needed, it’s important to find one, or a combination, that works effectively for the family.