There is constant talk in the news about national numbers like the Gross Domestic Product (GDP). Sure these numbers are general markers that measure how a country is doing financially, which is a predictor for how the country is going overall, but what does it mean for the average citizen?
Before determining the importance of the GDP, one needs to understand what it is. Although calculating the GDP is very complicated and should be left to the experts, the concept can be simplified and understood as the average of what everyone in the country has spent, before taxes, over some measure of time like a year or a fiscal quarter.
The higher the GDP, the better it is for the country. The more money that is in circulation, the more opportunity the economy has to grow.
Other than the bragging rights a prosperous economy allows for the US, an increasing GDP means job growth. With more money being spent and made by others, there is a demand for more jobs. The opportunity for money to be made promotes entrepreneurs to open new businesses creating even more new jobs.
Consequently, with more disposable income, interest rates for traditional loans tend to decrease.
Unfortunately, the GDP does not always increase or increase dramatically enough. When economic conditions are unfavorable, interest rates climb.
Fortunately, there are alternatives to traditional lending institutions, such as payday loans. Interest rates for payday loans are much less directly related to the GDP, meaning that the climb much less dramatically that those of banks.
And because they are much easier to obtain and designed to be short term, there is very little hassle involved. You don’t even need to consider economic conditions before applying!