High inflation is threatening many countries. This condition triggers people to seek loans.
As quoted from CNN, Friday (6/24/2022), in the last few weeks, the legal assistant at the Mississippi Center for Justice Indianola, Yumekia Jones received an extraordinary surge in calls, the increase reaching 400%.
The high number of calls from people who need financial assistance quickly.
Most of them want to avoid loans from their payday, which offer cash without a credit check with interest rates above 500%.
Inflation has been at its highest level in 40 years and unemployment is near its lowest level in half a century. For some economists, both represent significant economic problems.
However, for loan hunters it portends happy days and good times ahead.
“Low unemployment plus inflation generally means consumers may need loans for additional capital to manage spikes and unexpected spending while earning money to repay these loans,” said David Fisher, CEO of lender Enova.
Quarterly revenue has exceeded forecasts by 7.7%. Around 44% of all loans were made to new customers in the last quarter.
The increase in borrowing occurred in the United States (US) when inflation reached its highest level in more than four decades. Right now, Americans are struggling to get food and gas.
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