44% of Brits use payday loans for essentials
05/02/2015
New research has found that 44% of people in the UK who have taken out a pay day loan have used it to pay for essentials such as food and travel costs.
The research, conducted on behalf of debt advice and solutions provider, Debt Advisory Center (DAC), also found that 35% of borrowers took out a loan to pay for their rent or mortgage, and 22% used the loan to cover their bills. More controversially 20% of people who took out a payday loan did so to pay for a holiday, and 5% to treat themselves.
Across the UK 3.5 million people have taken out a payday loan in the past 12 months. 9% of the male population and 5% of the female population have used payday loans in the last year. Payday loans seem to attract the younger generation the most, with 17% of 25-34 year olds having taken one out in the last year. This compares to 9% of 35-44 year olds, and 3.6% of people aged 45-54 years.
Ian Williams, spokesman for DAC, said:
“Many people who are struggling with money problems often put off tackling them – for example, believing that if they can just borrow some money to get through this month, then things will be better next month. However, for a great many people that simply isn’t true: if you have got to the stage where you need to borrow money to buy food or pay the rent, a loan isn’t the solution - it is time to seek expert help with you finances.”
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