A report has just been released into the financial activities of the British public and makes interesting reading. The report is one that is based on a regular survey by the Association of Business Recovery Professionals. The association is a trade body which serves lawyers and other professionals that specialise in bankruptcy cases. The report has an interesting section on the growing importance of short term loans in Britain.
The survey was one of the first comprehensive analyses of how and why customers in this country are using short term loans and short term personal loans in general and is of interest in the U.S. as well, where there has been considerable debate about the effects of the industry on insolvency. In contrast with the U.S., these short term loans have only been available in Britain relatively recently.
The findings of the survey are outlined below.
• 39% of the surveyed population claimed that credit card debt was their main concern and was also the main reason that they took out online loans.
• 70% of the surveyed population said that they were unable to secure short term credit advances anywhere else but through an instant cash loan company.
• Two thirds of those interviewed stated that they were able to pay back their loans by the due date.
• A third of the surveyed population said that taking out an additional short term loan made it even more difficult to balance the books while the remainder said it did actually help them to get by until their next pay day or salary adjustment.
• Of the number surveyed, 7% said that they expected to take out a short term loan or paycheck loan in the next six months.
• A half of the survey said that short term loans were easier to get than any other form of loan.
The survey definitely demonstrated the demand for short term loans or instant cash loans in the country with 3.5 million, i.e. 7%, likely to take one out in the next six months or so. It also appears that the majority of such users of short term loans have made the attempt to take out more conventional loans and have been unable to do so successfully.