Responsible lender, Creditspring, provided borrowers with over £95 million in affordable credit during the first six months of 2024, up 82% from £52.4 million in H1 2023.

Despite inflation easing, demand for affordable, short-term credit options remains high. During H1 2024, Creditspring received over seven million applications from borrowers who are locked out of mainstream credit options. 

Many people across the UK are hugely concerned about their financial situation – three in ten (28%) of people say they are the most financially unstable they’ve ever been. Similarly, many people will have been forced to empty any savings pots they did have to survive the cost of living crisis, now with a fifth (21%) of people having no savings at all, many are forced to turn to credit.

Over one in ten (13%) people admit they’re reliant on credit to pay bills – rising to a fifth (20%) of 18-34 year olds – whilst 12% of UK adults have been forced to turn to a debt advice charity for support.

Household pressures are clearly at breaking point and access to additional financial support is vital.

During the first six months of 2024, Creditspring has provided almost 223,000 loans to borrowers who may otherwise have been forced to turn to high-cost or even illegal lenders to survive.

Creditspring’s Benefits Finder tool, launched in Q4 2023, has already unlocked £620 million in unclaimed benefits in just nine months, with individuals entitled to an average of £930 per month in additional financial support. Over 66,000 members have used Creditspring’s Benefits Finder, with over eight in ten (84%) discovering they were eligible for benefits they hadn’t yet claimed.

There is a clear need for improved access to financial support. With almost a fifth (17%) of people in the UK forced to turn to benefits due to the cost of living, the Benefits Finder helps users access the available financial support they may be entitled to but have yet to claim.

Neil Kadagathur, CEO and Co-Founder at Creditspring, comments: “Although the worst of the cost of living crisis is over, millions of people across the UK now find themselves in the most perilous financial position of their lives with no option but to rely on credit to survive.

“Many households have exhausted savings and built debt piles as they’ve been forced to borrow to afford everyday essentials. Affordable, short-term credit options are a lifeline for those struggling – Creditspring has provided millions of people with responsible financial support throughout 2024 and there are few signs that demand will reduce in the second half of the year with the expensive summer holiday period and Christmas yet to come.

 “Without responsible credit options, many people will have no alternative but to turn to high-cost or predatory lenders with hidden costs and extortionate rates. Unfortunately, these lenders often encourage borrowers to take on additional debt and ultimately push people into vicious debt spirals they are unable to escape from. These borrowers need a transparent and inclusive solution that improves access to affordable credit options and prevents debt spirals.” 

Creditspring provides a new way to access credit safely. FCA-regulated, it is a credit subscription service that responsibly offers short-term, affordable credit to borrowers. Members pay a fixed membership fee every month to allow them to access two no-interest loans per year with clear repayment terms, capped costs and no hidden charges, late fees or confusing interest rates.