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Payday loans twice as attractive as credit unions

Payday loan companies are twice as attractive to those seeking urgent financial help than credit unions, a new survey has revealed.

09 April 2014
Debt loans
Loan Money

A survey of more than 2,000 British adults revealed 4 per cent had taken out a payday loan within the past six months, while just 2 per cent had sought help from a credit union.

The survey showed that 25 to 34-year-olds were the most likely to use a payday loan, with 8 per cent taking one out.

The research, carried out by insolvency body R3, showed that 8 per cent of adults are likely to take out a payday loan in the next six months.

Phillip Sykes, deputy vice president of R3, says: ‘Credit unions are often touted as an alternative to payday loans, but on this evidence they have a lot of catching up to do.

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