Concern as the over-30s crowd turn to payday loans

09 July 2010

Over a third of cash-strapped consumers turning to payday loans are in their thirties, according to the latest figures from a payday loans provider.

Application figures from a payday loan company called ‘Speed-e loans' have revealed that Britons aged between 30 and 40, a demographic which is traditionally perceived to be one of the most affluent, make up 36% of payday loan customers. 

Financial experts have said that the use of this type of expensive borrowing by Britons in their thirties shows that many are still struggling financially in the wake of the recession.

The research also showed that 39% of borrowers were aged 20-30.

The top three reasons for taking out a payday loan were another cause for concern. 32% of loans were taken out simply to pay day-to-day bills, 22% were for an "emergency purchase" and 19% were for a "special occasion".

Last month the company revealed that white collar workers and professionals were their "top borrowers", with 7% of payday loan customers being doctors, accountants, solicitors and financial advisors.

Commenting on the figures, Gary Miller-Cheevers, CEO from the company Speed-e loans, 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."