Top list of payday loan applications during the pandemic
Hotel and restaurant workers topped the list of payday loan applicants during the pandemic and made the most short-term loan applications over the past year, according to new data from loan broker Little-Loans.com.
Of all the occupations, short-term loan applications were rated the highest by hospitality staff such as hotel staff, waiters, hotel cleaners and bar staff.
The new data found that the average short-term loan amount taken out by hospitality workers was £ 1,532.
Little-Loans.com said it should “come as no surprise” that hospitality workers are financially affected and turning to credit, with hotel staff, waiters and general hospitality jobs being hit hard by site closings over the period.
Workers in the construction and manufacturing industries ranked second for the highest number of payday loan applications per industry, while NHS health workers ranked third.
Greater London, West Midlands and Lancashire topped the list of regional applications, with the majority of short-term loan applications coming from these regions.
A spokesman for Little-Loans.com commented on the data: “It is interesting to see that the professions that have made the most payday loan applications this year are employees in industries that have been badly hit by the crisis Covid-19 restrictions and bans. It is understandable, therefore, that employees in these industries may need additional financial support.
“Our website allows customers to search for short term loans with a large group of lenders to get the best APR based on their personal circumstances. The average loan amount to customers that year was £ 1,531.
They added: “Short-term loans allow customers with poor credit ratings to quickly access small amounts of money, for example for household emergencies such as boiler repairs or car breakdowns. They shouldn’t be used for unnecessary expenses like Christmas shopping. ”