A research published recently by The Money Advice Service shows 16.8 million working-age people across the UK have less than £100 in savings available to them at any time, making them vulnerable to an unplanned expense.
Nearly three quarters of people experience an unforeseen expense at least once a year, and although the Money Advice Service research suggests only 18% of people would borrow money if needed, for 6% of those on low income,using credit would be the chosen solution, another 7% wouldn’t be able to meet the expense, and 11% would have to cut back in order to do so.
The non-savers demographics revealed by the research shows there is a huge overlap between those and the Street UK customer base. Street UK customers are also more likely to be single (75%), less likely to be economically active (55% unemployed or retired) and more likely to live in rented accommodation (60% social housing, 26% private landlord).
Over half of Street UK customers state that they would have gone to another lender if Street UK did not exist and 1 in 4 have had a loan with a high cost lender in the past. With defaults being part of the credit file for 70% of our customers, going to another lender would mean falling into high cost lenders and loan sharks, as mainstream credit providers such as banks and building societies would consider them too risky based on their credit profiles.
Click here to read Suzan story of how Street UK helped her with an unexpected expense.
We assess customers based on more than just credit files, evaluating their current situation and how much they can afford to pay, as well as aligning repayments with their income. During the application, we offer budgeting advice to improve customers financial situation and 78% of customers state that Street UK had more than just a financial impact in their lives, improving their self-esteem, reducing the level of stress and helping them manage their money better.
You can find out more about our customers and how we help on our Social Impact Report, available here.