Short-term loans taken out to pay

ONE in six short-term loans were taken out to cover essential bills, research reveals.

Since January, peer-to-peer short-term credit provider Welendus has received 35,000 applications for loans, and more than 5,000 of these were to cover household bills – including 2,400 for utility bills.

As winter approaches and after a series of price hikes from energy firms this year, the numbers of people needing financial assistance to pay bills is expected to rise.

The fact that such high numbers of applications were made to tackle basic bills highlights the severity of the financial difficulties many people currently face.

This is not just an issue for low income households. Three- quarters of applicants were in full-time employment, with a significant number earning above the average UK salary.