Middle earners 'most likely' to use payday loans

Middle income earners are the most likely group to become reliant on payday loans, a study has found.

The research by InstantLoansDirect.com disproved the commonly held belief that people on low incomes are more dependent on the instant cash.

Using information gathered from its own site, the company found that of all people taking out payday loans, 57 per cent were earning a salary between £25- 50K, while just 24 per cent were classed as low income.

Some 94 per cent were employed full time and two per cent were students, with the average amount borrowed via the site coming in at £250.

"Most people assume that the demand for instant loans is directed mainly from lower earners or the unemployed, which couldn't really be further from the truth," said Giles Coutts, founder of InstantLoansDirect.com.

Meanwhile, Aviva has discovered that more people are turning to family members when they need a loan, with 63 per cent of those polled claiming to have had an increase in approaches for cash from relatives.

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2011-08-18 14:02:17 © Moneyextra.com