The Critical Role of Fast Cash in the Consumer Marketplace

Access to all types of credit, including fast cash loans, is a vital part of the consumer marketplace. Credit is an important pillar of the American economy, and according to, it plays the most critical role in a healthy economy. Consumer credit is defined as all personal debt that is not related to housing. Although the use of credit was frowned upon in earlier centuries, modern economists have learned that consumer credit is directly linked to the confidence that people have in the state of their nation’s economy.

What Role Does Fast Cash Play in the Consumer Market?


Men shake hands on fast cash deal

The availability of fast cash is a critical element in today’s economy

At the most basic level, if people do not have fast cash access to purchase goods, pay bills or obtain an education, the economy will stagnate. Consumer spending accounts for more than 66 percent of the nation’s total gross domestic product consumption, according to When consumers cannot obtain credit, they cannot spend as much, so the GDP will face stunted growth.

When many people think of the types of items that consumers use credit to purchase, they think of new cars, major appliances and other high-dollar goods. However, every dollar spent in a grocery store or at an auto repair shop counts as consumer spending. This is where access to fast cash plays an important role. Fast cash loans will not be sufficient to purchase a new car, but they can help families pay for repairs or purchase gasoline.

A fast online loan might not pay for remodeling a kitchen, but it can help ensure that there is food in the refrigerator and that the appliances remain connected to the utilities. These fast cash, small-dollar loans will not cover a vacation in Hawaii, but they can help make sure that a child receives a birthday present, school supplies or a winter coat. In short, having access to small-dollar loans allows more individuals to contribute to the nation’s total consumer spending.

Can Fast Cash Loans Actually Make a Significant Impact on the Economy?

Although many people realize that having access to small-dollar loans can make an impact on the lives of the individuals using them, they often question whether such loans matter to the economy. Consider this: Every year, more than 19 million households take out over $38 billion in fast cash and similar payday loans, according to the Community Financial Services Association of America. That is more than the amount spent at dollar stores or to attend professional sports events. In other words, the amount that fast cash loans contribute to consumer spending is far from insignificant.

The Consumer Marketplace Is a Network of Interrelated Factors

Consumer credit and spending, which can vary greatly by season, are just part of the consumer market. Economists also consider the total of all consumer debt, credit card delinquencies, the prime interest rate, the ratio of revolving credit to non-revolving credit, retail sales, the rate of inflation and many other factors to determine whether the consumer marketplace is healthy or struggling.

Despite evidence that access to consumer credit is critical for economic growth, however, there are some who disapprove of personal credit. Up until the 17th century, debt was viewed as a way to live beyond your means, a practice that was considered immoral by many theologians of the time. Debtors’ prisons existed in most European countries to house those who incurred debts that they could not repay. Although modern Americans do not face imprisonment for failing to pay their debts, there is still a social stigma attached to those who seek bankruptcy protection or who have impaired credit.

That those who disapprove of consumer credit are in error becomes evident when you examine the history of credit in America. Prior to World War II, about the only credit product that most Americans used was a home mortgage. During the years following the war, it became more common to finance cars, credit cards came into existence and an increasing number of Americans chose to use credit to purchase appliances and furniture. From the late 1940s into the 1960s, the country experienced economic growth that had never been seen before. Even though there was usually just one wage earner in the household, the nation and its citizens prospered.

Opponents of consumer credit also raise concerns that the nation is awash in untenable personal debt. They point to the decades following World War II as proof of overconsumption. However, they seem to overlook one fact: Credit does not alter the total of the consumer’s lifetime resources. Instead, people borrow today to spend today, but later, they will spend less to repay the loan. All that is really being changed is the timing of the expenditures.

Admittedly, all forms of credit, including fast cash online and other small-denomination loans, can be misused. Credit should be used to better one’s situation rather than to provide the means to splurge on recreational activities or to make impulse purchases. For example, taking out a loan to repair a leaking roof has long-term benefits; if neglected, the repairs will be more expensive, worsening the family’s financial situation. On the other hand, using a fast cash advance loan to purchase a designer handbag to boost one’s social status can make a bad financial situation even worse. All forms of credit should be used for productive reasons, and borrowers should have a realistic view of how they will meet their obligations.

Do You Want to Learn More About Fast Loans?

Consumers who are knowledgeable about the way that credit, the economy and budgets work have a better chance of avoiding financial mistakes. They can become more aware of the consequences of their actions and find ways to improve their lives. When it comes to personal finance, ignorance is not bliss; knowledge is the key to using credit to empower borrowers, while a lack of knowledge can leave borrowers hopelessly mired in a cycle of debt. To help you navigate the world of personal finance, the Personal Money Store offers an extensive library of informative articles online covering a wide variety of topics.

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