New survey suggests a quarter of 18-24 year olds will consider taking out a payday loan in the next six months

Research on behalf of R3, the trade body for insolvency practitioners, suggests that as many as five million of us will think about taking out a payday loan over the next six months – a rise of 50% on this time last year. 

The number of 18-24 year olds likely to turn to a payday loan dwarfs that of other age groups, with some 26% considering this as a solution to financial shortfalls.  Just 4% of those over 45 would consider this kind of lender.

The survey points up the difference between seeking a loan as a financial solution – where the money is for a specific purpose or purchase and repayments are affordable – and a debt solution, where payday loans are perceived as short term bridging finance. The report suggests that in the past six months 12% of 18-24 year olds have chosen to pay back their payday loan before buying food.

For more information on this survey, go to http://www.r3.org.uk/index.cfm?page=1114&element=17525&refpage=1008