Lender sees spike in demand as cost of living struggles accelerate

Lender, Creditspring has reported a spike in demand over the last 12 months with 260,000 members seeking credit as the cost of living crisis extends into 2023.

The lender says its membership base has spiked over the last 12 months – increasing from 100,000 at the start of 2022 to over a quarter of a million today.  Many of Creditspring’s members are classed as near-prime who struggle to access affordable credit /

Neil Kadagathur, Co-Founder and CEO of Creditspring, said “Given rising costs and falling value of wages, UK households have become hugely reliant on credit to get by. But they need an affordable option that protects them from debt and unscrupulous high-cost lenders.”

“With the cost of borrowing rising at the time when people are increasingly forced to turn to credit, the lending industry needs to do much more to provide more affordable alternatives to those in need. Clearly, predatory lenders have no place in the industry and need to be stamped out but all lenders need to ensure they’re improving transparency so borrowers can evaluate the true cost of borrowing.”

“We’ve seen a major jump in the number of borrowers approaching us for financial support over the last year and expect this growth to continue. As lenders, we have a responsibility to do all we can to help people reduce their chances of falling into unmanageable debt. Our no-interest, subscription model provides affordable credit without risking borrowers falling into a debt spiral as well as enabling them to build their credit files to unlock access to mainstream credit in future.”