Motorists getting payday loans to pay for petrol

9 September 2013

fuel gauge The AA have done a report and deduced that petrol is now so expensive that motorists are having to pay for it with money from payday loan companies and pawnbrokers.

They've also found that drivers are having to use savings, hammer their overdrafts and borrowed from friends and families to pay for fuel.

The AA report says: "Four pump price swings in the past 18 months, each temporarily adding up to £5 to the cost of a small tank of fuel, have forced one in six drivers (16 per cent) to raid savings, owe money to the bank, pawn possessions or take out a payday loan."

"A further 20 per cent have seen fuel price surges push their budgets to near breaking-point."

AA president Edmund King said: "Fuel price desperation has created a new and sinister twist to the phrase 'driven into debt'. Our survey has exposed the heavy impact of fuel price surges and which groups of drivers are particularly vulnerable."

"Last week, we laid bare the consumer backlash to rising fuel prices, showing that yet another pump price swing crashed UK petrol consumption in July down to winter levels. This survey moves the microscope from the forecourt to the home and finds unsettling evidence of fuel market-inspired deprivation."

"Young drivers with little capital to fall back on and who are likely to be on lower pay scales are clearly suffering the most - one in 50 of them have put themselves in real financial danger by taking out a payday loan. But, they are not alone."

"But the survey reveals that one in 50 of middle-aged AA members, aged 35 to 44 years, have also turned to high-interest lenders to counter crippling fuel price surges. These drivers are probably saddled with family costs and mortgages or high rents, and their predicament is even more disturbing."

TOPICS:   Motoring   Debt

21 comments

  • Les D.
    35 is middle aged???? fuck off. To be quite frank, the fact that the AA are complaining about high prices is a fucking joke. The AA and RAC are by far the 2 most expensive breakdown companies.
  • hillsandvalets
    Why would you continue to pay high rent/large mortgages beyond your means when you can't even afford to get to your place of work without taking a loan. I can possibly understand a 17 year old apprentice or student living with his parents, borrowing money on the last week of the month. Time to sell the house, or get a cheaper rental. Or the obvious choice, improve your earnings by taking a second job or getting qualified to improve your income.
  • Jim
    @Less average life expectancy is about 70-80. Half of that is 35-40. If anything their band is generous. @hills It's pretty simple, it costs you to move house. 2% of your house in agent fees, 1% in stamp duty. The average house is about £240k so that £4800 + £2400, so that's £7,200 already. Then add on solicitors, mortgage arrangement and actually moving you're going to be close to £10k. Payday loans aren't the answer but not sure moving closer to work is either.
  • Captain.Cretin
    Or downsize your car / drive more fuel efficiently. Using a lower gear and engine braking down hills soon adds up, I regularly beat other drivers of our company supplied cars by 20% on MPG. Since the boss only looks at fuel usage, that adds up to a lot of free private miles for me.
  • Grammar N.
    Captain.Cretin is my hero.
  • Terry
    @hillsandvalets - What if you are already at the lowest you can get to? not everyone is squandering money. I'm sure the point the AA are making is that as petrol prices rise most wages don't, stretching them.
  • jim
    the real jim here not the imposter. in other news: lots of shit is more expensive than before
  • Alexis
    Seems daft trundling around in a brand spanking new 1.0L Kia Picanto smuggly thinking about the money you're saving on fuel but ignoring the fact you're forking out £250 a month for the car. Just get a loan and buy a 4 or 5 year old car that puts a smile on your face instead. Fuel is only one part of the cost of owning a car.
  • fibbingarchie
    Can't afford fuel for your car? Jog on!
  • Fred F.
    Use your feet to propel your vehicle. YABBA DABBA DOO!
  • Whisky
    A remarkably easy way to save fuel is to simply unplug the EGR valve. This used to be a common thing to do on the Euro 3 engines but on newer engines it throws error codes up. I have had problems with my EGR valve sticking - the last time happening in France. I unplugged the wire from it effectively blanking it and the MPG has gone from 52 to 60 with no change in driving. The downside is I have the engine warning light on permanently. Easy to ignore.
  • Neil
    What the hell has this to do with payday loans? anything to grab a headline?
  • shiftynifty
    Captain.Cretin is not my hero.
  • Captain.Cretin
    @Chewbacca's dead mum No, a LOWER gear going down hills, keeping the revs up above about 1.8 to 2.2k rpm when the throttle is at idle cuts the flow of fuel to the engine (in most modern cars) - and also saves on brake wear. Other than that - yes, change up a gear at a lower speed; I am lucky, my car has loads of torque, so will happily chug along in 5th gear at 25 mph, even up a slight incline.
  • Grammar N.
    I wish my car had loads of torque like my hero Captain.Cretin's car.
  • Whisky
    @ captain.cretin Your doing it wrong. Speed up going downhill then gradually let the speed off on the next flat or going uphill. Has a better effect on mpg them just taking your foot off going downhill.
  • Phuck Y.
    I doubt it's paying for the petrol. Maybe if they stop buying iPads they'd have enough money to pay for fuel. Let them descend into the dark world of payday loans, fuck em!
  • jokester
    On one hand, petrol prices are fucking ridiculous. But on the other hand, many people don't really help themselves with these giant SUVs/MPVs. These people are quite simply selfish arseholes who make the road more dangerous just because they have a need to compensate for their microscopic genitalia.... If you don't need to take your vehicle on farms, then why the fuck have you got a giant SUV? P.S. I refuse to call these vehicles "4x4s" because quite a few "4x4s" aren't 4WD and many 4WDs aren't "4x4s"...
  • Motorists L.
    [...] Motorists getting payday loans to pay for petrol fuel gauge 285×300 Motorists getting payday loans to pay for petrol The AA have done a report and deduced that petrol is now so expensive that motorists are having to pay for it with money from payday loan companies and pawnbrokers. They've also found … Read more on Bitterwallet [...]
  • Cmkinvestments
    This depict that most of in 50 of them have put themselves in real financial danger by taking out a payday loan.
  • jokester
    @cmkinvestments I understand every one of those words, but the order you have put them in makes absolutely no sense.

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