In a recent survey, a Dublin, Ireland research institution, Research and Markets, found that U.S. consumers were the most likely to have "no spare cash." This would suggest that Americans, more than any other nationality, are likely to need a payday loan when encountering an unexpected expense.

In fact, Americans in the same survey were asked how they spend the spare cash they do have, 37 percent said they use it to pay off credit card debt and/or other loans. While it is unclear how much this lack of cash is due to spending or paying off previous loans, the fact remains that Americans are the most likely to need to borrow for future needs.

While it appears that the market for short term payday loans continues to increase, they are not consumers' only option. The interest rates on the credit cards may or may not be better than those on unsecured loans, but they may have rewards programs or other benefits.

Similarly, home equity loans have lower interest rates than unsecured loans. Bankrate.com cited a 7.99 percent APR, on average, for a $30,000 loan in September 2005, while the Federal Reserve cites over 12 percent for a 24-month personal loan.

In a 2001 survey of payday loan customers, 66 percent used the small, online cash loans (which are usually limited to $500) because of unexpected expenses and/or temporary reduction in income.

The report clearly identifies the principal factors driving or curtailing growth in unsecured loans. Exclusive research reveals consumer attitudes and behavior toward loans, broken down by demographics. Six years of sales data provide a factual and impartial presentation of the market, which continues to make the news with great regularity.

The Center on Business and Poverty at the University of Wisconsin-Madison received a two-year, $35,000 grant from the Helen Bader Foundation.

The UW organization researches and disseminates information that helps companies assist their low-income employees. The grant from the foundation will fund a program to teach better financial management to low-income, Milwaukee-area residents.

The Center on Business and Poverty is an initiative of the Institute for Research on Poverty. It arranges for qualified volunteers to work through companies to assist employees in filling out tax forms. Employees learn more about other financial resources as well, such as ways to deposit paychecks directly, avoiding overdraft fees, or ever having to rely on last-ditch options like fast payday loans.

"For low-income people, tax time the biggest financial day of the year. Refunds and credits often are picked up during tax season. If employees get good advice from the volunteers we bring in to do taxes at work, it can make all of the difference for low-income families," said John Hoffmire, Director of the Center on Business and Poverty.

Federal Reserve Chairman Ben Bernanke recently stated that while most Americans manage money reasonably well, low-income families have the greatest difficulty.

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Corporate environments, sprawling apartments, financial freedom - such are the dreams of many college students as soon as that final exam is passed in. They hope to ditch their graduation gowns for a life on their own.

Unfortunately, rising student loan payments make this difficult. Recent studies show that the price of education is higher than ever - could the use of a payday loan be the answer?

For the 2005-06 school year, the average cost of attending a four-year public school was $5,491, according to the College Board. Meanwhile, full-time enrollment in a four-year private university set students cost $21,235. Consequently, the U.S. Department of Education's National Center for Education Statistics reported that an estimated 65 percent of the students who graduated in the 2003-04 school year had student loans.

That's A LOT. The result? Graduates are soon saddled with debt before even receiving their first paycheck. For this reason, many turn to online payday loans.

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It's not an ideal time to be a consumer. Inflation registered another sizable increase in May, pushed higher by soaring gasoline prices. More and more individuals will soon be turning to online payday loans in order to deal with such difficulties.

Most worrisome of all is the following: there's further evidence that the jump in energy costs is beginning to cause even more widespread inflation troubles. The Labor Department reported Wednesday that its Consumer Price Index posted a 0.4 percent increase in May after an even bigger 0.6 percent rise in April. Gasoline prices jumped by 4.9 percent and have been soaring this year at an annual rate of 69.4 percent.

It seems like a cruel joke, but people may soon need a payday loan in order to afford a full tank.

Excluding energy and food, core inflation rose by a larger-than-expected 0.3 percent. That increase is certain to get attention at the Federal Reserve, where Chairman Ben Bernanke last week called a recent uptick in core inflation rates "unwelcome." Investors, meanwhile, are concerned that the Fed will raise rates for a 17th time at its next meeting on June 28-29, increasing risks that the hoped-for soft landing for the economy will instead be a more severe slowdown.

While most American households do well when it comes to money management, lower-income families — which generally have less of a financial cushion to deal with unexpected problems — face many challenges, Federal Reserve Chairman Ben Bernanke said Tuesday.

Bernanke observed that families are coping with higher borrowing costs and lofty energy prices in these times.

In addition, U.S. consumers must deal with an array of increasingly complex financial products that seem bewildering when it comes to making smart financial decisions.

"U.S. households overall have been managing their personal finances well. On average, consumer debt burdens appear to be at manageable levels and delinquency rates on personal loans and home loans have been low," Bernanke noted.

The lower-income bracket Bernanke speaks of is the target of payday loan firms, critics of the industry are quick to point out.

While most U.S. households are juggling their financial obligations well, families with lower incomes face greater difficulties with credit card debt, medical bills and more.

"These families generally have less of a cushion to absorb unanticipated expenses or to deal with adverse circumstances, such as the loss of employment or a serious health problem," Bernanke said.

Low income families are significantly less likely to have a checking or savings accounts. Families on the low end of the income spectrum are also were less able than others to manage their debts.

Financial education, encouraging savings and investment, community economic development initiatives and other things can help families of modest means build assets and improve their economic well-being, rather than relying on a payday advance service and other short-term, quick-fix methods of getting by.

Bernanke urged the promotion of financial literacy in schools.

"I served six years on the local school board and one of the issues I was always pressing was to get more economics into the curriculum, including financial literacy. It was always a push," Bernanke recalled.

Are you struggling with credit card debt and wondering whether or not a payday loan would provide assistance? You are FAR from alone.

The average household in possession of at least one credit card has doubled its balances in the last decade. According to Cardweb.com, credit card debt per household reached $9,312 in 2004, the latest year for which statistics are available. Moreover, the total national balance is $665 billion. No wonder the popularity of faxless payday loans has been on the rise!

Figures from the American Bankers Association showed 4.81 percent of all accounts were 30 days past due last summer. As a result, many people have simply sworn off credit cards.

“I had a bunch of credit card debt when I was in college,” said insurance agent Evan Glassman, 27, who lives in Delray Beach, FL. His balance hit about $14,000. “It took me a little while to get rid of it. But I can think of a lot smarter things to do with my money.”

While Glassman did not mention the use of any cheap payday loans to finally become debt free, other consumers have taken this step.