Anyone who goes online knows that there are plenty of companies that offer online lending options, like those sites that offer e payday loans online. For those not familiar with these types of loans, e payday loans online lending companies offer electronic (e) cash advance loans (aka payday loans.) These types of loans allow people with jobs to get small loans to hold them over in between paydays at work. But why have e payday loans grown in popularity so much in recent years?
Could Fidelity Study Show Why E Payday Loans Online are on the Rise?
A new study that was conducted by Fidelity Investments may help to explain the rise in popularity of e payday loans online and other types of alternative financial products. This study paints a picture of millions of people in this country who have very little confidence in their financial futures. A little more than 250,000 people took part in this study. The results have given the experts at Fidelity more information about how people feel about their financial health. And the way that many people feel may help to explain why taking out e payday loans online has become a regular activity for tens of thousands of American consumers.
The Fidelity study used an online method to get demographic information about participants. Additionally, the online tool gave people a few questions about their debt, how much they have in savings, and their financial goals. The study also asked if people were anywhere near to reaching their personal financial goals. It turns out that more than half of the study participants don’t have adequate savings. These same people also reported having less than healthy spending habits. Only about 38 percent of the people questioned had an emergency spending account with money to cover 3 months of expenses. With all of this information in mind, it is a little easier to understand why people may opt to take out payday loans online, as the financial standing for so many people leaves a lot to be desired.
Failing Financial Health and E Payday Loans Online
Financial health for one person may not be the same as it is for someone else. For example, someone with good credit, but little saved up may not choose to take out e payday loans online. This person may have adequate credit to cover emergency expenses. Another person, however, may have a low credit score and virtually no money saved up. This person may have no other alternative than to take out e payday loans online when they have a cash flow emergency. Both of these cases demonstrate people who may not be the perfect pictures of financial health. But with lots of people having issues related to subprime credit scores, it is clear why so many consumers take out e payday loans online or turn to other alternative lenders when they are short on cash.
The Future of E Payday Loans Online
Some people who participated in the Fidelity Study indicated that they were not taking steps to invest in their financial futures. Many of these folks were in the 36 to 50 age range. With little money saved up for retirement, many of these people may find that they will simply have to rely on e payday loans online or via local lending locations if they come up short on cash in the near future. They may also face severe financial hardships during their golden years.
Most will agree that taking out e payday loans online may not be the best option for everyone. However, the Fidelity study shows that so many people are on rocky ground with regards to their finances that they may have to continue to take out e payday loans online or turn to other resources to help with emergency expenses.