Number of Brits Turning to Payday Loans to Cover Rent More Than Doubles

LONDON--()--The number of Brits turning to short term loans to cover their rent or mortgage has more than doubled, new figures reveal.

In the past two years the amount of people applying for short term credit who said they needed help paying for their accommodation increased by 115%.

New data from FCA authorised credit broker CashLady found the total number of people applying for loans has also nearly doubled since 2015, with a 93% increase in volume.

As well as the number of loan applications rising, the average loan amount requested by hard-up Brits has increased by 45% from £224 in 2015 to £325 in 2017.

The statistics from CashLady comes just weeks after the Financial Conduct Authority revealed that one in six Brits (17%) would struggle to pay their mortgage or rent if it increased by just £50.

Earlier this month, the Bank of England’s Monetary Policy Committee announced it would increase interest rates for the first time in ten years - from 0.25% to 0.5%.

The CashLady figures have been released after the Chancellor Philip Hammond was accused of leaving 'ordinary' Brits out of yesterday's budget, by failing to mention a wage boost for public sector workers.

Figures*(2) also revealed that NHS workers still top the list of employees who most require emergency financial help. They are followed by supermarket staff from Tesco, Asda and Sainsbury’s. Hard-up members of the armed forces also make up the top five workforces requesting short term loans.

Managing Director of CashLady Chris Hackett said: “Keeping a roof over your head is a basic human right.

“These figures, uncomfortable as they are, lay bare the state of the nation as people are struggling to cover their rent or mortgage payments.

“Wages for some of our most valuable members of society are just not high enough for them to manage basic living costs and they are regularly being forced to seek out short-term financial help.

“Housing expenditure is the largest monthly expense for our customers and they should be able to comfortably afford this before turning to emergency finance.

“We act as a broker for short term credit to help our customers find financial assistance from FCA authorised credit providers instead of seeking out illegal or potentially dangerous alternatives.”

*(1) The comparative figures come from CashLady data taken May to October 2015 and May to October 2017. Over 300,000 loan applications were analysed.

*(2) Statistics from CashLady 2017, Q1 and Q2

Contacts

Goldbug Agency
katie.earlam@goldbug.agency
0203 770 7612

Contacts

Goldbug Agency
katie.earlam@goldbug.agency
0203 770 7612