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.
*Period: February to May 2010
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