The recession resulted in traditional financial institutions taking a far more cautious approach to lending because of the toxic debt many of them were forced to write off as uncollectable. The main criterion that was adopted was an applicant’s credit score even though many fairly innocent people were caught up in things over which they had little control. When they lost their jobs their ability to meet their bills was severely reduced and any defaults hit that score. Fortunately there are other companies in the financial sector with a different approach.
The USA’s economy has emerged from recession. At one time unemployment figures exceeded 10% though it has now halved to be around the pre-recession level. While that is good news the growth in real wages is still slow leaving many of the population with a good deal to do to repair their finances with guaranteed loans .
The unemployment rate in Sacramento has failed to fall either to the California average or the national average. It is the State Capital though it is appreciably smaller than both Los Angeles and San Francisco with a population a little below 500,000. The State is the largest employer and arguably its status as capital has meant its employment figures are better than they would be if it wasn’t. Average annual wages remain under $30,000 so overall there are clearly economic problems despite the fact that overall the national economy is improving. Many work for well below the average because 30% earns $75,000 or more. The consequence is that there is a section of the population that finds life difficult, living from pay check to pay check and often finding problems stretching the money to last the whole month.[Continue Reading…]