LOS ANGELES, June 10 /PRNewswire/ -- Direct payday lender, Pay1Day.com - Yet another alarming figure arises in this seemingly never-ending saga of our economic crisis, this time regarding our paychecks, or lack thereof. It seems that Americans everywhere are struggling to tighten up their household budgets and re-adjust their investment strategies, while others are simply struggling to make ends meet. All the while US Senators are attempting to put the finishing touches on a consumer financial protection bill aimed at protecting consumers from another economic meltdown, but according to some recent figures we may be fighting an uphill battle like no other in American economic history.
According to a recent study from USA Today, it seems that the percentage of American's income derived from private business paychecks fell to the lowest numbers in American history, dropping from 44.6% of American's personal income in Dec. 2007 at the start of the recession to 41.9% during the first quarter of 2010. It also seems that the percentage of government benefits have increased to near record levels since the onset of our recession, which has some economists speculating as to the outcome of this increase in funding to government benefit programs, such as unemployment benefits and social security. Some economists argue that this upswing in benefits will ultimately help our economy by fueling consumer spending, while others argue that it will harm our economy in the long-term because these government benefits are not taxable to the same level as business paychecks.
Although Americans are receiving a smaller percentage of paychecks from employers than ever they are still turning to one of the only sources of short-term credit still available to low-income families, payday advance loans. These short-term direct payday loans are used to help those in need to access a small loan, usually to be repaid the next paycheck.
According to About Payday Loans, some payday lenders are accepting government assistance or social security checks in place of an employer paycheck in order to get a payday loan, although Pay1Day.com does not provide any loans to those receiving social security checks or any government aid.
Payday loans can be crucial to those with bad credit, or those with lack of lending options when just a little cash is needed until the next paycheck. And now more than ever, that situation seems to be occurring quite frequently.
Although the future of our economy is uncertain, it is good to know that there are still sources of credit and lending options available to those Americans who may need it. Also, Americans are strongly advised to select their source carefully and only apply for a payday loan with trusted payday lenders.