Financial Services: Overview

Contextual Information

Debt can be considered as both a precursor to, and consequence of, poverty.

Research commissioned by Glasgow City Council suggests that annually, 100,000 residents borrow £57 million through payday lenders, home credit, pawnbrokers and other forms of non-standard credit.

 

Age

Research by the Personal Finance Research Centre presents a robust dataset analysing issues of credit and debt. More specifically, within their UK sample of 1,451 particpants:

  • People under the age of 29 are significantly more likely to use online payday loans (37%) and retail payday loans (32%) than older generations.

This age bracket is also over-represented in the use of pawnbrokers (28%). Generally speaking, those over the age of 29, tend to utilise home credit as a source of short term income.

 

Disability

IPSOS Mori surveyed a 1000 disabled people throughout the UK, offering a range of insights into the financial difficulties faced by this community:

  • 21% feel their financial situation is poor
  • Disabled people are less likely to use banking systems when they run out of money, 18% use an authorised/arranged overdraft, compared to 31% of non-disabled people
  • One in eight disabled people have been turned down for credit in the last five years
  • As a result of being turned down, 26% have had to borrow money from family and friends and 13% have missed bill payments
  • Half of disabled people have used a credit card or loan to pay for everyday items in the last 12 months.

 

Race

Research by the Personal Finance Research Centre suggests non-white people were twice as likely as white people to feel "trapped in a cycle of borrowing", through their use of short term credit.

 

Religion and Belief

At the current moment, Glasgow City Council does not have sufficiently robust research to detail within this section. Further evidence will be provided, as and when it becomes available.

 

Sex

UK wide research by the Personal Finance Research Centre (sample: 1,451) provides a demographic breakdown of consumer credit, by sex:

  • Payday loan: Women 39%, men 61%
  • Payday (retail): Women 51%, men 49%
  • Pawnbroker: Women 59%, men 41%
  • Home credit: Women 64%, men 35%

 

Sexual Orientation

At the current moment, Glasgow City Council does not have sufficiently robust research to detail within this section.  Further evidence will be provided, as and when it becomes available.