Who is most likely to take out a payday loan?
Data shows bar and restaurant staff topping the list for short-term loan applications ahead of construction workers, followed by NHS staff and health workers.
The data, which was released shortly before National Hospitality Day on Saturday 18 September, shows that the average amount of short-term loans borrowed by staff in the hotel industry was £ 1,532.
The Little-Loans.com loan comparison website said that given the restrictions placed on the hospitality industry during the lockdown, it should come as no surprise that industry staff have been hit financially.
Greater London, the West Midlands and Lancashire topped the list of regional requests for such loans.
A spokesperson for Little-Loans.com said: “It is interesting to see that the professions that have made the most payday loan applications this year are employees in industries heavily impacted by Covid restrictions and lockdowns. -19. It is therefore understandable that personnel in these industries may need additional financial support.
“The average loan amount extended to clients this year was £ 1,531. Short-term loans allow customers with poor credit scores to quickly access small amounts of money, for things like household emergencies, such as boiler repairs or car breakdowns. They should not be used for unnecessary expenses, such as vacation shopping.
Employers also affected
Of course, it wasn’t just pub staff who needed loans during the pandemic, thousands of pubs were dependent on bailouts from their pubcos and the government, often through the Coronavirus Business Interruption Loan Scheme (CBILS).
Scottish brewer and retailer BrewDog secured a £ 25million CBILS at the end of last year while Red Oak Taverns, which took control of nine Hall & Woodhouse pubs this week, received a loan from £ 2.5million in July 2020.
Meanwhile, Stonegate, the UK’s largest advertising company, has been forced to use £ 70million in state benefits as it recorded a loss of £ 746million during the pandemic.