78% of people who took payday loans wanted money for food, says charity

‘Inside Housing’ reports;

“A debt charity is calling for tighter regulations to protect vulnerable people from payday lenders after publishing findings from a survey of its clients.

Christians Against Poverty found four out of five, 78 per cent, of service users who took part in the survey took out payday loans to afford food.

52 per cent took out a loan for electricity/gas bills, 36 per cent took out a loan for rent /mortgage and 27 per cent took out a loan for the cost of Christmas.

It also found one in five people weren’t asked if they had a job.

Chief executive Matt Barlow said: ‘This evidence shows that people taking out payday loans are not, typically, doing cosy house repairs as most payday lenders would have us believe.

‘People who take out this expensive sort of credit are hungry, worried about keeping warm and becoming homeless.’

More than 1,500 of CAP’s clients were asked if they had taken out a payday loan and more than half had taken out between two and five loans.

A further 16 per cent said they had ‘lost count’ of how many payday loans they had used.”

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This entry was posted in Credit Union, Debt, Payday lenders, Poverty and tagged , , . Bookmark the permalink.

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