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Title:	Understanding consumer experiences of high cost credit in Wales
Keywords:	DEBT CREDIT WALES 2016
Description:	A major study conducted by the Young Foundation and funded by the Economic and Social Research Council investigating the use of high cost credit in Wales. The research was carried out throughout 2015 with the final report - Credit where credit’s due? Understanding experiences of high cost credit in Wales – published in May 2016. An estimated 12 million people across the UK lack access to affordable credit, something the majority take for granted in everyday life. The alternatives for many are high cost lenders – payday loans, doorstep lenders, or expensive rent-to-own stores on the high street. This financial exclusion is harmful to individuals and families, our communities and the wider economy. Objectives: We set out to understand the scale of the issue, pathways into and journeys through high cost credit, and the impact this has. We aimed to identify opportunities and offer suggestions for new and improved products, services and ways of engaging consumers – and to outline what might work as alternatives to high cost credit. Key Findings: • Six per cent of the Welsh population have used one or more of rent-to-own stores, home credit and payday loans in the last year. • Customers come from all walks of life but are most likely to be young families. • Reasons for using high cost credit range from paying for Christmas or buying new items for the home, to simply paying the bills and making ends meet. For most, these represent essential purchases. • The majority of people turn straight to high cost credit without considering different types of credit or comparing offers between lenders. • High cost credit customers are typically extremely aware of their income and outgoings, often using ‘jam jar’ and other informal money management solutions. • Many see high cost credit options as being ‘for people like me’ and one of a very limited set of financial options. • The majority of high cost credit customers live in communities where these types of borrowing are normal. • Home credit providers especially are in a strong position to encourage repeat borrowing. • Customer perceptions of payday loans still firmly reflect the pre-cap market. • By contrast, rent-to-own and home credit have largely slipped through the net of negative publicity. • Regulating all forms of high cost credit out of existence is not the answer. • There is a clear need for market growth in the affordable credit market.
URI:	https://t2-4.bsc.es/jspui/handle/123456789/60652
Other Identifiers:	852437 10.5255/UKDA-SN-852437 https://doi.org/10.5255/UKDA-SN-852437
Appears in Collections:	Cessda

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