Public sector workers most likely to use payday loans

payday loans

A new poll has revealed that public sector workers are the most likely to turn to payday loans to make ends meet.

The poll was conducted by, the UK’s largest independent loans comparison website. They surveyed 8,000 anonymous visitors to their website last month, who were there seeking short-term loans.

27 per cent of those in employment who were seeking a payday loan worked in the public sector, such as nurses and council staff.

Meanwhile, 24 per cent of all those who were seeking a payday loan said the money would be used for unexpected bills, because of not having enough savings.

18 per cent were applying for a payday loan in order to pay off an existing payday loan, while 15 per cent needed the money to help meet their mortgage and rent payments.

“Payday loans have a negative stigma attached to them, but the reality is that they are now part and parcel of some people’s lives as the pay squeeze intensifies as wage growth falls further behind inflation,” said Stephanie Cole, operations manager at Readies.

“The pay squeeze, particularly on public sector workers, will only serve to increase the number of people turning to payday loans who are already struggling with rising fuel, food and transport costs.

“Anyone considering a payday loan – or any loan for that matter – should always seek to get the right information to make an informed borrowing decision.”