For some people struggling to make ends meet, payday loans and title loans have become a quick source of income to offset an unexpected financial shortfall. (Access to title loans and payday loans in Charlotte NC is quick and easy at Cash Fast Loan Centers.) But how many consumers have taken these kinds of loans out recently? And what’s the reason behind this?

Payday & Title Loans in Early Pandemic

Reports have shown that in the first few months of the COVID-19 pandemic, consumers took out less payday & title loans than was typical for the same time in the previous year. By June 2020, the number of consumers who still owed money on these loans fell by half. This finding shows that many consumers had paid off the remaining amount they owed on these loans and did not take out additional ones.

The decrease in the amount of payday & title loan applications at the start of the pandemic could have been tied to the fact that many lenders completely stopped offering loans during that time.

Recent Payday & Title Loan Use

As recent as January of 2021, the amount of people taking out payday & title loans has increased. It seemed the initial financial shock of the start of the pandemic had worn off, and people went back to their old borrowing trends.

Why Are Loans Being Taken Out?

The primary reason behind many consumers’ borrowing is to consolidate debt, followed by starting a business and needing to pay off medical bills. These priorities make perfect sense, as with the pandemic, many consumers faced medical needs that they would not face under normal circumstances, causing them to accrue medical debt, which now needs to be paid off. On top of this, many people lost jobs because of COVID restrictions, and therefore, they also lost health insurance access. This loss of insurance caused their medical costs to skyrocket.

Additionally, with the new boom in digital stores and online retailing (spurred by quarantines), many are taking out personal loans to cover the expenses of starting an online business. This drastic change in the business landscape contributes to how many people are currently taking out short-term loans.

Cash Fast Loan Centers

Have you experienced a financial shortfall due to COVID? Do you need some quick cash in the short term to get back on your feet? Title loans and payday loans in Charlotte NC can be found at Cash Fast Loan Centers. We can recommend the best short-term loan for your situation and have the money in your hands quickly. So check out the nearest location today.