It is largely assumed that people who access payday loans are on the breadline and are vulnerable customers for the payday loan firms to prey on. Whilst this might be true in a small number of cases, the latest research shows that one in 14 payday loan applications are from customers in ‘professional’ careers like doctors, accountants and solicitors, who all command respectable salaries. Moreover, half of all applicants occupied ‘white collar’ jobs including management, sales and marketing. These findings were made available by online lender who carried out this analysis.

Typical payday loan products are short term loans accessed by customers on a short term basis of between 15 and 31 days, for amounts between £100 and £1000. The concept is that the borrower has enough money is their bank account the following payday to repay the loan in full. The customer is charged an APR of between 1737% and 5000% depending on which company they use and how long they borrow the money for. Often companies offer a fixed price to borrow the money for less than one month of £25 for every £100 borrowed.

There is a wide belief that people ‘live to their means’ therefore these results should not come as a surprise. Although accountants and doctors command good salaries, chances are they have larger mortgages, more expensive outgoings and bigger commitments than people earning a lesser salary. Therefore an unexpected bill or expense can have the same impact on professional people as it can on people who are less skilled and on a lower income. In fact an ‘unforeseen cost increase’ was the reason cited by most people interviewed for this survey, working in professional roles.

The fact that 7% of payday loan applicant’s work in professional jobs and over 50% of applicants work in white collar roles illustrates just how popular the cash till payday loan product has become. The industry is now thought to be worth approximately £2 billion in the UK alone and increases every year. However the Office of Fair Trading is currently in the process of auditing the industry to discourage poor practise and false advertising.

The popularity of payday loans has exploded ever since they were introduced to the UK market in 2006. They have become so well-established that they are now being accessed by professional workers, white-collar workers as well as unskilled workers. The main reason people cite for borrowing this type of loan is to cover an unexpected monthly expense.

About The Author: Laura Susstance is a content writer from London, UK. as well as actively contributing to guest blog posts she also writes on her own website: Fast Payday Loans Review

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