An online survey of more than 1,000 people, carried out by discount vouchers website, CouponCroc.co.uk, has revealed that over a quarter (28%) of Britons have considered using a payday loans website in the last 12 months due to increased financial difficulties.
This alarming finding comes despite the fact that payday lenders, dubbed 'legal loan sharks' – some of which cite more than 4000% representative APR – have come under constant fire from MPs and consumer groups.
Financial woes are also pushing people to swap jewellery and keepsakes for money on cash-for-gold websites, with 34% of respondents saying that, in the past year, they had considered using one of these for the first time.
Meanwhile, to give an idea of just how stretched the nation's finances have become, almost three quarters (73%) have at least two credit cards and 14% of Britons admit to having five credit cards or more.
Scott Green, director of CouponCroc.co.uk, comments:
"With the cost of living soaring and many people out of work or under threat of losing their jobs, they're considering increasingly desperate measures to free up some quick cash.
"Converting the family gold into cash, or taking out a short-term loan to tide you over until payday may seem to offer the solution to money or debt woes but in many cases will only make the situation worse.
"We urge anyone who is considering these measures to seek advice from their local Citizens Advice Bureau or a licensed insolvency practitioner, as a quick fix often hides far more fundamental problems. As for the fact that one in seven have five credit cards or more, this underlines just how geared the nation's finances have become."
