Millions of UK citizens take out a payday loan annually. For a long time, the assumption has been that same day loans are unilaterally taken by low-income earners in the UK. While this is true to some extent, it would be foolhardy to hold that opinion. Even those with a decent income at times find themselves in a financial quandary and resort to payday loans. Be as it may, the reality of the matter is that there are a clique of individuals that commonly take out same day personal loans in the UK. Who are they?
Young UK citizens
Young UK citizens in their early 20s all the way to their early 40s take out more than 50% of payday loans. In fact, UK citizens between the ages of 25 to 44 have at least applied for one same day cash advance in their lifetime. Payday loan applications are common among UK citizens in this age group as compared to those who are 60 years and above.
The fact of the matter is that individuals who rent are more likely to apply for a same day loan as compared to those who own houses. With the high costs of living and the need to pay bills on time, renters commonly use same day loans as compared to individuals who own homes. In fact, at least one in every 10 renters have applied for a same day loan in their lifetime.
Disabled or unemployed
Individuals with a disability or unemployment benefits are the favourite of most same day loan lenders. In fact, payday loan lenders have no qualms cashing in on the benefits of the disabled or the unemployed. For this reason, most individuals under disability or unemployment benefits tend to resort to same day personal loans when the going gets tough.
Those earning low incomes find it difficult making ends meet. They essentially live from one paycheck to another and therefore to get through to the next payday, they resort to payday loans. The reason for applying for a same day payday loan could be to meet day to day expenses or simply to repair a broken car. Whatever the case, low-income earners form the bulk of individuals that commonly use payday loans.
Relatively uneducated people
Granted, a substantial number of individuals apply for same day loans out of ignorance. Those who dropped out of high school are more likely to take a same day loan as compared to highly educated individuals.