New data uncovers higher earners are turning to short term borrowing, with the average short term loan applicant salary more than a third higher than three years ago  

New research has revealed that the average salary of those applying for short term loans is 35% higher compared to three years ago, highlighting a new shift in the demographic of loan applicants – with even higher earners needing access to short term credit as the cost-of-living crisis deepens. 

Financial Conduct Authority (FCA) authorised and regulated credit broker Little-Loans.com has investigated the average monthly net pay of their loan applicants from August 2019 to August 2022 and discovered that the average applicant monthly net pay has increased to £1,960, up from £1,457. That’s equivalent to a pre-tax annual salary of £23,520 compared to £17,484.   

To further highlight the increase in demand, between July 2021 and July 2022 there was a whopping 173% increase in the number of Brits searching for ‘same day loans online’. Searches for the terms ‘get a loan today’, ‘easy loans’ and ‘quick cash loans’ also spiked by 85%, 83% and 81% respectively.   

The Little-Loans.com data further indicated that over 60% of loan applicants were full-time employees, with support workers making the highest number of applications. However, in terms of general industries, it was those working in Construction and Manufacturing who made the most applications, closely followed by those working in the Hotel, Restaurant and Leisure industry, and the Health industry.    

Commenting on the data, Personal Finance Expert at Little-Loans.com, Dan Whittaker said:    

“It’s clear to see that there’s been a shift in the demographic of applicants applying for a quick loan with us, with applicants earning over a third more than they were just a few years ago.”    

“Typically, our applicants are looking for quick access to credit to cover unexpected costs, such as urgent home repairs or necessary replacement of essential appliances. With the cost-of-living crisis impacting the majority of the UK, it’s no surprise that more and more people are having to seek out loans to help pay for these unexpected costs regardless of their income”. 

“Whereas these customers may previously have been able to dip into savings to cover these expenses, those savings may now have been eroded by the spiraling costs in fuel, food and energy bills.”