Two fifths of those drawing loans used the money to pay their rent or mortgage and food
(PRWEB UK) 17 July 2012
The union said workers faced "horrific" levels of interest of up to 4,200% as they take out loans averaging £200 a month.
Unite said that at such high levels of interest, it would take people three working days a month to pay back a loan of £200. Two fifths of those drawing payday loans loans used the money to pay their rent or mortgage and food, while a further 15% spent it on utility bills.
Londoners borrowed the most for housing, while workers in Scotland were most likely to use loans to buy food. A local authority worker from the East Midlands told researchers she would borrow up to £400 and pay back £560, adding that it was difficult to escape from the cycle of borrowing.
The study, conducted by social research firm Mass1, also showed that workers were cutting back on buying healthy food and even considered leading supermarkets to be too expensive.
Unite general secretary Len McCluskey said: "This is the true cost of the banking crisis and this government's mindless austerity addiction. Working men and women are under horrific strain, lumped with wage cuts and rising costs.”
The research, presented at Unite's national policy conference in Brighton on Wednesday, also showed that most workers believed they were worse off as a result of the Budget earlier this year.
Dosh Express is the Honest Lender, helping you get to payday. Based in Castle Donington, in the Midlands, the company’s mission is to provide a great lending service to thousands of our happy customers and be a great place of employment for our staff. Please visit doshexpress.com to apply for a loan, and if you are approved cash is usually deposited in your account within minutes, subject to status. Dosh Express, the trading name of Dosh Express Limited, is a consumer lender offering short-term payday loans, is a member of the Consumer Credit Trade Association (CCTA), and is licenced and regulated by the Office of Fair Trading.