Qualified advisers answering your
Financial Questions
call 0800 092 1245

44% of Brits use payday loans for essentials


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.”

Need financial Advice?

If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details