Rise in cash-strapped Doncaster residents applying for emergency loans

'‹The number of cash-strapped Doncaster residents who applied for emergency financial help in in the run up to Christmas doubled inside a year, new figures reveal.

Thursday, 4th January 2018, 11:20 am
Updated Thursday, 4th January 2018, 11:25 am
The table showing Doncaster.

The town is now ranked as tenth in a list of the UK towns and cities most reliant on using payday loans to get by.

Comparing data from the 30 days prior to Christmas in 2016 with the same time frame last year, the number of applications in Doncaster for short term loans went up by more than 94 per cent.

Payday loans.

The town overtook Sheffield in the top 10 which fell out of the table having placed fifth last year.

The statistics were revealed by short-term credit broker Cashlady.com. The company said it could not state exactly how many applications were submitted due to it being commercially sensitive but did reveal that they dealt with hundreds of requests.

In addition to the number of loan applications increasing, the data also found that the amount being requested went up by​ ​3.1 per cent​ ​from​ ​£320​ ​per​ ​month​ ​to​ ​£330.

It also comes as research by data analysis firm ECA revealed Brits can expect just a 0.2 per cent real ​salary​ increase in 2018 – the equivalent of £4.41 a month or £53 a year before tax, based on an average ​annual salary​ of​ ​£26, 000.

Payday loans.

Chris​ ​Hackett,​ ​managing​ director​ ​of​ ​CashLady,​ said:​ ​“The​ ​reality​ ​is​ ​that​ ​people​ ​across​ ​the country​ ​are​ ​feeling​ ​the​ ​pinch​ ​but​ ​people​ ​in​ ​Doncaster​ ​appear​ ​to​ ​be​ ​particularly​ ​struggling.

“Not only are more people in Doncaster applying for emergency financial help, they are also requesting bigger loan amounts which suggests people are using emergency finance to cover day​ ​to​ ​day​ ​expenditures.

“The figures, particularly around Christmas, make for uncomfortable reading and a stark illustration of real life challenges faced by a large percentage of the UK population. The problem looks​ ​set​ ​to​ ​continue​ ​into​ ​2018​ ​as​ ​inflation​ ​is​ ​rising​ ​faster​ ​than​ ​earnings​ ​in​ ​most​ ​sectors.”

Manchester and Liverpool both ranked in the top ten cities with the highest number of loan applications, which made the North-West the UK region most likely to apply for short-term financial​ ​help.