Cost of living pushes more women to apply for credit to make ends meet warns Callcredit
Callcredit Information Group has today revealed that 72 per cent of females, compared to just 28 per cent of men, have applied for credit in the last 18 months with the main reason cited for doing so being to make up for shortfalls in income.
The independent research undertaken by fast.Map* also revealed that;
- 25 per cent of females are now far more likely to apply for credit to cover household goods compared to 8 per cent of males and 22 per cent for emergencies compared to 16 per cent of males
- 7 per cent of females are more likely to apply for payday loans compared to 5 per cent of men
With the rising cost in energy bills, the weekly shopping and the continued uncertain economic climate these recent figures will be no surprise as consumers turn to additional forms of credit to be able to cover the rising cost of living and unplanned outgoings.
Graham Lund, Managing Director, Callcredit Information Group said: "It is clear from the research that the financial pressures of day-to-day living are continuing to increase which in some cases is causing consumers to look for additional credit to help cover any shortfall.
"With consumers looking for alternative ways to be able to cope with the strains of a spiralling economy it is ever more important for lenders to have a deeper understanding of customer affordability to help consider the financial pressures they already have."
Figures also showed that fifty per cent of men, compared to 41 per cent of women, are more likely to have taken out more than one form of credit over the last two years, with debt consolidation as one of the key reasons for doing so.
As the changes to the budget begin to take hold more and more consumers will begin to feel the pinch and will be looking for ways to manage the rising cost of living. As this realisation hits lenders it is now more important than ever for them to ensure they continue to uphold responsible lending practices increasing the necessity for them to have stringent affordability assessments in place throughout the lending cycle to help support this.
*Research conducted by fast.Map from a sample of 2,052 individuals randomly selected from their Consumer Voice panel. Members are recruited via a number of sources to demographically represent the markets based on age and gender