We all know that payday loans are bad for our pockets, but new research shows they’re even worse our health. A report launched today from the Royal Society for Public Health (RSPH) found that the poverty premium is having a serious impact on the wellbeing of society’s poorest.
The Life on Debt Row report highlights how the UK’s growing high cost credit providers are causing a destructive effect on public health, including driving alcohol and tobacco consumption amongst the most vulnerable.
Payday loans were found to the be the worst offender, followed by unauthorised overdrafts, doorstep loans and weekly payment stores.
High cost credit providers are causing a destructive effect on public health
Nearly half (49 per cent) of credit users said they drink more alcohol as a result of their debt with this rising to three in five (62 per cent) among payday loan users.
Launched in parliament today, the report is the first time a major public health body has documented the health and wellbeing impact of poor credit. Changes to benefits such as the controversial roll out of Universal Credit has also been raised within the report. With four in five credit users (79 per cent) saying the changes led to them using more credit than they would have otherwise.
The RSPH is now calling on the Government and the lending industry itself to protect the health of those users including a call to end targeted marketing to vulnerable individuals and health warnings on all credit agreements.
