Young drivers most likely to turn to payday loans to help cover rising petrol costs

Increasingly, young drivers are turning to financial help in the form of payday loans as as the cost of driving continues to rise.

According to mirror.co.uk, a survey by AA has found that the choice to take out a payday loan to help pay for fuel is particularly popular with young people between the ages of 18 – 24 years old, as two per cent choose to take out a short-term loan to pay for petrol when they're low on cash.

It's not just young people that are affected by the price of fuel though, as a sixth of drivers are choosing to dip into their savings, take out a payday loan, pawn valuable items and go overdrawn because they can't afford to pay for petrol or other related costs.

Fuel prices have gone up four times over the last 18 months, with petrol prices at their highest since March at 138.06p a litre and diesel at its highest since April at 142.44p, reports thisismoney.co.uk. The rises affect those in unskilled and low-paid work the most, with a third responding that their household budgets are struggling due to fuel costs.

Edmund King, AA president, said: “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.”