Over a third of cash-strapped consumers turning to payday loans are in their thirties, according to the latest figures from a payday loans provider.
Application figures from a payday loan company called ‘Speed-e loans’ have revealed that Britons aged between 30 and 40, a demographic which is traditionally perceived to be one of the most affluent, make up 36% of payday loan customers.
Financial experts have said that the use of this type of expensive borrowing by Britons in their thirties shows that many are still struggling financially in the wake of the recession.
The research also showed that 39% of borrowers were aged 20-30.
The top three reasons for taking out a payday loan were another cause for concern. 32% of loans were taken out simply to pay day-to-day bills, 22% were for an “emergency purchase” and 19% were for a “special occasion”.
Last month the company revealed that white collar workers and professionals were their “top borrowers”, with 7% of payday loan customers being doctors, accountants, solicitors and financial advisors.
Commenting on the figures, Gary Miller-Cheevers, CEO from the company Speed-e loans, says: “39% of our borrowers are aged 20-30 which one might expect, but surprisingly 36% are in the 30-40 age bracket – people who are traditionally regarded as being more financially sophisticated than their younger contemporaries.”
The latest payday loan application figures from Speed-e-loans have highlighted how the credit crunch continues to bite hard, particularly hitting those in the 30-40 year age band – a demographic traditionally perceived to be among the most affluent.
The figures* show how over a third (36%) of cash-strapped consumers turning to payday loans are in their thirties, with 32% of all payday loan applications being used to service day-to-day bills.
The top 3 payday loan purposes:
- 32% borrow to pay day-to-day bills
- 22% borrow for an ‘emergency purchase’
- 19% for a ‘special occasion’
Commenting on the figures, Gary Miller-Cheevers, CEO from the company says: “39% of our borrowers are aged 20-30 which one might expect, but surprisingly 36% are in the 30-40 age bracket – people who are traditionally regarded as being more financially sophisticated than their younger contemporaries.
“The fact that they are turning to payday loans in order to maintain their day-to-day living costs may indicate that borrowing money this way may be more cost-effective than turning to overdrafts or credit cards”.
Figures released last month from Speed-e-loans also revealed how white collar workers and professionals are their top payday loan borrowers, with 7% of all borrowers being employed as Solicitors, Accountants, Doctors or Financial Advisers.
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