UK payday loan hotspots revealed: Exeter placed 10th in Regional Rankings
Have you ever wondered as to where payday loan demand is highest across the UK? Great Western Credit Union has taken a look at this data to see what this tells us about financial resilience.
The data has been collected through using search data, median income data (from ONS), and population data to analyse and report on financial stress across the UK, comparing the demand for high cost credit to local financial health metrics. This can be useful information because it can tell us about financial resilience in the area, as well as help shape Money@Work, Great Western Credit Union’s salary deduction savings and loans scheme.
Let’s see where Exeter ranks in comparison to other areas across the UK!
Exeter comes in 10th in the payday loan searches
Exeter comes in with a median income of £655 and an average number of 4 payday loan searches per 10,000 residents, placing it 10th in the payday loan searches ranking.
Exeter also has a much smaller number of payday loan searches than its closest cities Plymouth and Yeovil, despite Plymouth having a greater median income of £713. This could imply that people living in Exeter have a more comfortable standard of living, and adequate savings to cover emergency payments ahead of the next payday.
When it comes to the South West, Plymouth and Yeovil top the list respectively for the number of payday loan searches, implying these areas may be experiencing financial pressures, with the greatest number of searches per 10k people for the term ‘payday loans. Meanwhile, Exeter is much lower with only 4 searches per 10k people, despite slightly lower median income.
Where do other UK cities rank in terms of payday loan searches?
The trend reveals higher levels of payday loan searches per 10,000 residents amongst the larger cities in the UK, and with national level data we have also compared to the total estimated average savings sum of each city from Shepherds Friendly 2023 survey to connect the dots between financial safety nets and the need for short-term finance.
London tops the list, showing higher income doesn’t equal financial security
Inner London dominates payday loan searches with nearly 10,000 monthly queries, almost four times higher than the next city. Despite having the highest median income (£958 per week) of all cities analysed, the capital’s high cost of living appears to drive many employees to seek short-term credit. This suggests that even in areas of higher earnings and better savings, disposable income may be squeezed by rent, transport, and energy costs for all but the highest earners.
Birmingham and Glasgow reveal urban financial pressure
Both Birmingham and Glasgow show 21 searches per 10,000 people, among the highest in the country. Yet Glasgow’s average savings balance (£6,419) is one of the lowest of any major city, suggesting a thinner financial safety net.
In Birmingham, although savings are higher (£23,790), the median income is relatively modest (£661 per week), pointing to a population reliant on savings to bridge shortfalls.
Edinburgh's interest ranks amongst the highest in the UK
Edinburgh’s 17 searches per 10,000 show notable demand for payday loans, despite a comparatively strong median income (£778). However, employees here hold just £9,504 in savings, implying limited liquidity even among higher earners.
What are the potential solutions to this? Greater financial security is the main one; and the new Money@Work initiative from Great Western Credit Union and other finance at work schemes can start to help employees build financial stability, and reduce reliance on payday loans.
