Despite inflation easing in the UK, three in ten (28 per cent) of people say they are the most financially unstable they’ve ever been. While many people across the UK are concerned about their financial situation, responsible lender, Creditspring, has revealed it has now provided over one million affordable loans to borrowers seeking short-term financial support.
Demand for affordable, short-term credit options remains high. Many people have been forced to empty any savings pots they did have to survive the cost of living crisis, now with 21 per cent of people having no savings at all, many are forced to turn to credit.
During H1 2024, Creditspring received over seven million applications from borrowers who were locked out of mainstream credit options. During the first six months of 2024, Creditspring has provided almost 223,000 loans to borrowers who may otherwise have been forced to turn to high-cost or even illegal lenders to survive.
Creditspring also provided borrowers with over £95million in affordable credit during the first six months of 2024, up 82 per cent from £52.4million in H1 2023. Since its launch, Creditspring has lent over £360million to almost 400,000 members.
Following the latest energy cap rise, 13 per cent of people admit they’re reliant on credit to pay bills – rising to 20 per cent of 18 to 34-year-olds. Meanwhile, 12 per cent of UK adults have been forced to turn to a debt advice charity for support. Under this environment, household pressures are at breaking point, making access to additional financial support all the more vital.
“Although inflation has dipped, millions of people remain in a perilous financial position without a savings cushion to fall back on and no option but to rely on credit to survive,” explained Neil Kadagathur, CEO at Creditspring.
“With energy bills set to spike again, affordable, short-term credit options are a lifeline for struggling households. Creditspring’s transparent and inclusive solution improves access to affordable credit options and has provided vital financial support to vulnerable people who would otherwise be forced to turn to high-cost or predatory lenders with hidden costs and extortionate rates.”
Improving access to financial support
Creditspring’s Benefits Finder tool, launched in Q4 2023, has already unlocked over £720million in unclaimed benefits, with individuals entitled to an average of £930 per month in additional financial support. Over 76,000 members have used Creditspring’s Benefits Finder, with 84 per cent discovering they were eligible for benefits they hadn’t yet claimed.
There is a clear need for improved access to financial support. With 17 per cent of people in the UK forced to turn to benefits due to the cost of living, the Benefits Finder is helping users access the available financial support they may be entitled to but have yet to claim.
Members of FCA-regulated Creditspring pay a fixed membership fee every month, enabling them to access two no-interest loans per year with clear repayment terms, capped costs and no hidden charges, late fees or confusing interest rates.
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