Hotel and restaurant staff have topped the list of payday loan applicants during the pandemic, making the most applications for short-term loans in the past year, according to new data from credit broker Little-Loans.com.
Applications for short term loans from staff from the hospitality industry, such as hotel staff, waiting staff, hotel cleaners and bar staff were found to be the highest out of all the professions.
The new data found that the average short term loan amount borrowed by staff in the hospitality sector was £1,532.
Little-Loans.com said it should “come as no surprise” that hospitality workers have been hit financially and turned to loans, with hotel staff, waiting staff and general hospitality roles being heavily affected by site closures over the period.
Workers in the construction and manufacturing industries came in second for the highest number of applications for payday loans per industry, while NHS health workers came in third.
Greater London, the West Midlands and Lancashire topped the list of regional applications, with the most applications for short term loans coming from these regions.
Commenting on the data, a spokesperson for Little-Loans.com said: “It’s interesting to see that the professions that have made the most applications for payday loans this year have been staff within industries that have been heavily impacted by Covid-19 restrictions and lockdowns. So, it is understandable that staff within these industries may need additional financial support.
“Our website allows customers to search for short term loans from a large panel of lenders in order to get the best APR based on their personal circumstances. The average loan amount for customers this year has been £1531.”
They added: “Short term loans allow customers with poor credit scores to gain access to small sums of cash quickly, for things like household emergencies, such as boiler repairs, or car breakdowns. They should not be used for unnecessary spending, such as holiday purchases.”