Hotel and restaurant staff have topped the list of payday loan applicants during the pandemic, new industry data has revealed.
Customer trends analysis from Little-Loans.com has discovered that staff in the hospitality and leisure industry made the most applications for short-term loans this year with employees in this sector borrowing on average £1,532.
Tight restrictions on the hospitality industry during lockdown has resulted in many hotel employees, waiting staff and general hospitality roles being heavily affected due to venue closures. People working in the construction and manufacturing industries have also been affected by restrictions with workers from this sector making the second highest number of applications for payday loans.
Surprisingly, NHS staff and health workers came in third on the list of industries which saw staff apply for payday loans.
Greater London, the West Midlands and Lancashire topped the list of regional applications, with the most applications for short-term loans coming from these regions.
The data has been released by FCA-regulated credit broker Little-Loans.com, a loans comparison website that allows users to compare small loans from over 40 lenders to secure the lowest APR possible.
Commenting on the data, a spokesperson for Little-Loans.com said: “It’s interesting to see that the professions that have made the most applications for payday loans this year have been staff within industries that have been heavily impacted by Covid-19 restrictions and lockdowns. So, it is understandable that staff within these industries may need additional financial support.”
They added: “The average loan amount for customers this year has been £1,531. Short term loans allow customers with poor credit scores to gain access to small sums of cash quickly, for things like household emergencies, such as boiler repairs, or car breakdowns. They should not be used for unnecessary spending, such as holiday purchases.”
The customer data trends have been based on payday loans applications for the period of April 2021 – June 2021, which had a sample size of 197,000 customer applications.
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