Payday loans continue to grow at a two-digit pace, and this has been holding for the seventh consecutive quarter. In the last two quarters, there is a slight slowdown in growth over the previous few. This type of credit is growing at a two-digit rate since the beginning of 2016, with a growth of almost 15% last year. The main reasons for the steady development of the business are the decrease in unemployment and the increase in the incomes of the population. Despite the positive changes in the key indicators of non-bank lending companies, the sector remains highly fragmented.
Unfortunately, the number of hard-up Brits applying for payday loans to help cover their rent or mortgage has more than doubled in just two years, shocking new figures reveal, said from www.mirror.co.uk.
The stats reveal that the number of total applicants looking for emergency financial help has also nearly doubled – having shot up by 93%. And the amount being requested to short-term credit broker CashLady has also increased by nearly 50% since 2015. It comes just after the Bank of England announced a rise in interest rates and the FCA found that one in six Brits wouldn’t be able to pay their rent or mortgage if it went up by just £50. 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 just ahead of the tomorrow’s budget, where the Chancellor Philip Hammond is expected to address housing.Yearly figures also revealed that NHS workers still top the list of employees who most require emergency financial help. Click To Tweet
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.