The latest research in Britain shows that there’s growing demand for affordable and convenient short-term credit in the UK, and that most payday loan customers are using the product responsibly and effectively.
(PRWEB) January 25, 2012
The Association of Business Recovery Professionals, the trade organization for bankruptcy lawyers and counselors in the United Kingdom, recently published the latest findings from its periodic survey into the financial practices of British residents. CashKingPaydayLoans.com provides consumers with valuable information and resources for their short term financial needs.
The Association, popularly known as R3 in Britain, surveyed 2,000 British adults in late October 2011. The survey’s findings have been widely discussed in the British media, as they have come at a time when the country is engaged in an intense debate over the government’s approach to the prolonged economic downturn and how to handle fallout from the European debt crisis.
Payday loans figured prominently in the survey. R3 asked numerous questions about payday lending and customer borrowing activity and its research marked the first extensive look into how consumers in Britain are using payday loans, which have only been available in the UK for the past few years.
This focus on payday loans makes the results of particular interest to financial experts in the US, where the debate over payday loans has been going on for quite some time.
Some key findings from the survey:
- 7% of all people surveyed said they plan to take out a payday loan in the next six months.
- 70% of people who had taken a payday loan said they couldn’t get credit elsewhere.
- 68% said they paid off their loan on time.
- 60% said their payday loan made it easier to balance their monthly budgets.
- 52% said they took a payday loan because it was easier to get than other forms of credit.
- 39% said credit card debt was the biggest reason they’re not able to pay their bills.
The R3 results clearly demonstrate that there is a large demand for affordable and convenient short-term credit in Britain, with 7% of the public, or 3.5 million people countrywide, planning to take out a payday loan in the near future.
A vast majority of people who patronize payday lenders have tried to secure funds at more “traditional” lenders, like banks and credit unions, but were turned away. This has left payday lenders as the only option open to most consumers when they have unexpected bills to pay.
Furthermore, the survey clearly demonstrated that the ease of securing a loan is a big factor in determining where British consumers seek funds, since more than half of respondents said they take payday loans because they’re the most convenient way to get short-term assistance.
As for overall customer satisfaction, most borrowers in Britain have had a very positive experience with payday loans. Nearly 70% said they paid off their loan on time, while 60% said that their loan had been instrumental in helping to resolve their temporary financial difficulties. This contrasts sharply with credit card debt, which almost 40% of people said was keeping them from getting their heads above water.
Some experts believe these numbers actually understate the true level of customer satisfaction with payday loans in Britain. John Lamidey, who heads the Consumer Finance Association in the UK, said “Our own independent research, and that of our members, has shown that on the contrary, 94% of payday customers are satisfied with the service.”
CashKingPaydayLoans.com is an online clearinghouse for payday loan information. It provides consumers with the resources they need to make informed decisions about their short-term financial options. CashKingPaydayLoans.com is not a lender nor does it promote payday loans as the only solution to cash-flow issues. But for qualified consumers who are looking for a reputable provider, it has a nation-wide search application that matches them with licensed payday loan companies. Plus, CashKingPaydayLoans.com promotes financial literacy by providing a step-by-step explanation of the borrowing process itself. CashKingPaydayLoans.com understands that when consumers are facing financial emergencies, time is of the essence – and the solution is putting the right tools at their fingertips.
 Evans, Tara. "Warning over 1,000 per Cent Rates as Millions Consider Taking out Payday Loans Just to Get by." Thisismoney.co.uk. 07 Dec. 2011. Web. 08 Dec. 2011. http://www.thisismoney.co.uk/money/article-2071092/Interest-rates-warning-millions-consider-taking-1-000-cent-payday-loans-just-by.html.