Consumers Use Cash Advances for Holiday Purchases

Christmas, cash advances, and pessimists

Christmas this year may have to still be funded by cash advance loans. Though pessimists claim this is bad news, some new studies show that it may not be as bad as they think. The pessimist looks at data and claims that it’s a sign that things are not returning to normal. The recession is over, but its aftermath is weighing heavily on the economy. People who are still wary of using credit cards or do not have cash to spend, and are turning to payday loans. With all due respect to the pessimists, a recent survey has revealed a brighter side to the story.

The survey

In a recent survey, Context-Based Research Group and Carton D’Onofrio Partners were the two companies that held the survey found that 43% of Americans believe the recession forced them to make healthy changes to their financial habits. One analyst summarized the apparent feelings of citizens as “less work, but more time with family” and “less credit, but smaller spending.” These two sentiments also seem to be the most prevalent among those surveyed. It is somewhat surprising for analysts who believed that most consumers would be more negative about in their reflections about the recession and its affects.

The results

Contrary to analysts’ predictions, the survey had a lot of positive results. With people being more aware of their spending habits and learning that they really can get by with less, there is a there is a new resilience evidence among Americans. Carton D’Onofrio analyst Stephen Dobbs said, “People realized that a financial catastrophe can happen, and things can be difficult, but they have the power to maneuver…and when they come out of the problems, they are not as critically damaged financially as they thought they would be.”

Case in point

One family used cash advance loans to get them meet monthly obligations and surprise medical bills. As a result, they now believe that they “know how to budget, to make up for a shortfall with short term loans, and then get back on track quickly.” Though plenty of experts predicted that people would collapse under the financial pressure of the recession, relatively few did. Yes, many went through foreclosures, repossessions and credit issues, but in the aftermath there are resources available to help them recover more quickly. They also are more capable of handling problems now that the immediacy of the financial disaster has passed.

New consumer view

In the end it seems that most consumers have a new healthier view of managing their finances. They are more frugal and more vigilant, but they are also open to various methods of obtaining credit. For example, cash advance loans are now being used as a staple in many people’s budgeting, rather than as only an emergency option. This shows that people are more open to various alternatives of getting through difficult financial times. The recession has taught people that flexibility is key when maneuvering the tumultuous waters of managing money in a difficult economy.

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