Lewisham tops the payday loan league table

Lewisham tops the payday loan borrowing league tableA study by the Consumer Credit Counselling Service (CCCS) found that Lewisham was one of three boroughs that topped the payday loan borrowing league table in 2012.

Introduction Research conducted for debt charity CCCS by the Financial Inclusion Centre at the beginning of 2012 identified London as the most over-indebted region in Great Britain, uncovering a ‘tale of two cities’ in the capital.

Key findings include:

  • Demand for debt advice is particularly high in a ring of inner London boroughs including Hackney, Newham, Greenwich and Lewisham, but the highest levels of demand exists in the south London boroughs of Croydon and Sutton.
  • The highest proportion of payday loan borrowing amongst CCCS clients in the capital came from south of the River Thames, with Lewisham, Bromley and Lambeth topping the payday loan borrowing league table.

The Debt and the Regions report found that while Londoners have higher than average earnings, relatively high savings and low levels of mortgage difficulty, a very large number of households in the capital are financially vulnerable.

The CCCS used its extensive database to analyse problem debt in London on a borough-by-borough basis. This analysis is based on the 11,015 Londoners who were counselled by the charity’s telephone helpline in 2011, and reveals the capital’s complex and multi-faceted personal debt landscape.

The report examines three themes – the scale of the personal debt problem, level of housing related debts and the incidence of payday loan borrowing in each borough.

Read London in the Red

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