Payday Loans Increase With Cost of Shopping in Washington DC
Strain on Finances
Shoppers in the Washington D.C. area will have to spend more money on each trip starting Friday, January 1, 2010. These additional costs, which are part of a new plan by the administration to close the gaps in budgets, will send them racing for more payday loans. To the already burdened consumer, this will no doubt be another cost that they will deem unnecessary. However, they will have to live with the additional expenses as part of their own budgets, and will need to figure out how to make it all work.
Shopping Trip Charges
Under the new scheme, which the administration is calling a “nickels and dimes” policy, shoppers will have to pay $0.05 every time they shop and request a shopping bag. Groceries, drug stores, liquor stores and retail outlets are all expected to add this charge on consumers’ bills who have forgotten to carry a shopping bag with them. This charge will get started to every paper or plastic bag handed out by the shops, but this is not the only part of the policy. By mid January, more people will have to pay over $2 an hour to park their cars, which is sure to put an additional burden on consumers who were already looking to save their nickels and dimes. These plans are sure to make shoppers stop at their neighborhood lenders office looking for a payday loan. Of course, planning will help to eliminate this burden by bringing along their own shopping bags.
Fund Raiser Scheme
The administration claims that this scheme was designed to raise money for the various assistance programs that help people affected by the recession. Many states are already burdened by too many unemployment benefits and are experiencing a shortage of funds. It is under these circumstances that they are looking to raise additional funds from the very consumers who may be the same people they want to help. It’s not just the shopping bags and parking fees that the administration is looking to charge money for, but also on overdue library books and car pool permits. Taxes have already been increased on cigarettes and gas, and the city expects the 14,749 parking spaces, charging $2 an hour, should make up for their deficit. Increasing the costs of shopping will mean that the consumer must budget for more money that will turn into another rush for more payday loans.
Right Idea, Wrong Time
States are looking to enforce these charges because they are facing huge deficits in their budgets. Job losses and unemployment benefits are leaving them with no other choice but to increase charges for common items. At the same time, restaurants in the area are complaining that these charges will only keep their customers away and cause further losses, and as free parking time on the weekends is reduced, the restaurateurs have a point. Consumers will be paying more money for the same services they were getting for free before, and will look to cut costs, including eating out. They will also look to take out payday loans to cover for the shortage in cash.