More than 1.2 million people turned to payday loan help this year to help them through a rough financial patch. Who do payday loans attract and for what purpose? Quick Loans Express, a fast loans UK lender explores the reason behind the shift in payday loan users.


Story Highlights:

  • Middle-class shift to payday loan help
  • Case Study: Person Helped by Payday Loans
  • More People with Degrees Taking Payday Loans
  • Payday Loan Assistance
  • Payday Loans: Help or Hindrance?
  • Are Payday Loans Bad?
  • Summary of Who Needs Payday Help

Middle-Class Starts Using Payday Loan Help

In the past, payday loans were not available online, and clients were likely to make their way to small corner shops, standing in long queues with working-class people who typically did not have university degrees. Short term loan companies provided relief for those who worked unskilled jobs, such as cleaners.

The middle class, however, avoided payday loans as they managed to live on their higher wages. While the economy was booming, life was good for middle-class workers, while unskilled workers still struggled to make ends meet. There was a direct split between those who could afford and those that could not. The societal classes were maintained so that they were divided into the rich, the middle class and those that lived in poverty.

This is changing. The economy is changing, society is changing, and the old rules no longer bind classes. Many middle-class people are struggling to stay afloat on their salaries, which had always provided enough for their living costs. Now, they are paying the price of falling wages, rises in living expenses and the shaky job market threatening workers who had previously enjoyed stability. The line between middle-class and poverty has become blurred. Money is tight for everyone.


A Person Helped by Payday Loans

Joseph William, for example, was the conventional middle-class journalist. He had a degree and a good job, and he was working his way to the top rungs in his career. In his own words, ‘I was doing everything right!’ Borrowing money had no place in his life. Payday loan help, in his mind, was reserved for the uneducated members of society. When the economy took a turn for the worse, it did not take long for him to discover the identities of regular payday loan clients.

In the wake of a bitter divorce, the media gossiped about the break-up, not only causing him emotional turmoil but leading his company to sack him as well. He found a simple job, but had no roof over his head. Mr William needed extra cash just to manage day to day living expenses. But where could he turn? Although payday loans once seemed untouchable, they now seemed like a good solution. He discovered the world of payday loans, the benefits, the dangers and most surprisingly, the type of people who use this service.


More People with Degrees Taking Payday Loan Help

Payday Loan Companies

Payday loan help is no longer exclusively for the working-class. Joseph’s middle-class counterparts now frequent the websites and stores offering these services. In fact, a study by the Chicago Federal Reserve (2015) found that the number of people with college degrees using payday loans has doubled since 2007. Payday loan companies have noticed this shift in clientele and offer competitive interest rates and services.

Payday Loan Assistance

Moreover, it’s no longer just payday loan companies offering quick loans. The banks are now on board too. Most people are not looking to borrow big money these days- they just need a shoulder to lean on to get through the month. The banks and payday loan companies, therefore, provide for those seeking quick and short-term loans. Payday loan help does not require any guarantor and so are quick and easy to arrange online if you have a steady source of income.


For people like Joseph, payday loans helped him get back on his feet. He needed an extra cash boost to tide him over until he could find new opportunities to revive his career. Payday loans gave him the ability to find a new job, put a roof over his head and provide for his children.

Payday Loans Demographics

The OFT found that young, single, employed, men earning more than £1000 in rented accommodations use payday loans the most. The higher earners are the most likely to use payday loans, wheareas the lower earners don’t typically borrow. People use payday loans as a temporary backup solution when they need quick cash to cover an emergency expense. They use fast payday loans to bridge the gap and repay the loan promptly.

Are Payday Loans Bad?

Although payday loans may seem like an easy and obvious fix when you’re low on cash, taking out any loan comes with responsibility. When deciding whether borrowing money, you need to consider all the options, with all their strings attached. You need to ask yourself how much do I need to borrow and for how long? What are the consequences of borrowing money? Most importantly, will I be able to pay it back?

Remember, loans need repayment and accumulate interest. Consequently, the longer you take to repay, the higher the interest will be. Furthermore, loans cannot be used as a long-term solution. Payday loans are intended for short-term use only, for times when you need a quick cash boost and you know you will be able to repay it at a later date. You need to plan carefully before taking out a loan and use the money sensibly. If you find you need to turn to them constantly, consider contacting advice services such as the Citizen Bureau and Money Advice Services who give impartial advice on money management.Finally, it is important to work out other ways of earning or saving money to cover one-time financial struggles. Do not let money consume your life.


Who Needs Payday Loans Help?

Quick Loans Express examined how society is changing so that more high-earners are turning toinstant payday loans direct lenders help then there were previously. The shift occurred because of downsized wages, higher cost of living and the nosedive in middle-class earners. Since the economy has shifted, and more people from all walks of life are looking for payday loan help. Although it can seem like a welcome relief, it is important to consider the dangers attached to loans so that you use them sensibly and temporarily.



PUBLISHED BY
Crystal Evans
Crystal is a likeable and fun personality. She is the life of the party, yet always thinking about others. Back in high school, Crystal scripted educational videos to help her peers understand complicated information in an easier format. Now that she has graduated university, Crystal takes her passion of helping others to write articles on topics she feels are helpful for her fellow Brits.

The article "Does a Payday Loan Help in Difficult Times?" was last modified on