Americans Use Payday Loans While the French Turn In Wine

French turning in their wine for profit

Since the recession began there has been an increase in payday loans in America. Every country is seeing some economic downslide and France is no exception. How they are dealing with their financial stress is different; the French are selling their generations-old wine. For France this is the worst their economy has been in over 30 years, and this is the first time they have taken to pawning wine as a way of raising extra money.

$273,000.00

The Credit municipal de Paris is taking wine in exchange for cash or loans to the people. Lenders and pawnbrokers are seeing a huge demand in recent months for citizens to raise money by turning to their wine cellars. Approximately 2,500 bottles have already been auctioned off, bringing in a total revenue of $273,000.

One wine expert, Robert Gorreteau, stated “In the wine cellars of Paris and even in the wine cellars of provinces, there are veritable treasures.” As the economic slump worsens, Parisians are turning their wine into money. Paris’ oldest financial institution has seen loan for wine requests increase to about 500 a day, up 30% since last year.

People are seeing wine trading for cash as a more reasonable option than finding loans that could cost them potentially thousands in interest rates and fees over its lifetime. They would rather part with a bottle of fine wine, collect their money and be done with it. One auction saw a 1982 bottle of Chateau Petrus sell for $2,660. With this kind of return, it’s no wonder France is unloading its wine collection for cash.

Americans seek extra funding

Americans are also looking for creative ways to build up funds. Pawn shops in the US are seeing a great increase in the flow of customers looking to trade their wares for cash. Nola Grayson of St. Paul, Minnesota stated, “We see pawn shops as a simple way to pay bills. It’s like a garage sale, only without the hassle of preparing. You take your old things that are slightly used, and get cash in return.”

Payday loans are also more popular than ever. They are seeing a notable rise in applicants hoping to be approved for upfront funds. Paperless loans are simple, quick and a stress-reliever for people who qualify. More Americans than ever are seeking to make ends meet with nontraditional funding.

The world is looking for relief

Overall the entire world is going through a grand shifting as a result of the economic distress it is under. People everywhere are looking for ways to pay their bills, while they wait for governmental agencies to regroup, and hopefully reinvigorate the economy. Many major cities are using stimulus plans of some type to spur their economy out of the recession that has been holding on since last year. Much of the regrouping is a result of mismanagement, but it’s too late to lay blame. As one economist said, “Whether Americans are getting payday loans or Parisians are selling wine, everyone is looking to get through the hard times the world economy is under. There’s no point in looking back, people need to keep looking to the future and work hard to recover.”