High petrol prices driving UK motorists to lenders
06 Sep 2013
On rising anxiety over galloping petrol prices, some motorists have had to pawn their possessions in a desperate bid to keep driving, an AA (Automobile Association) /Populus survey reveals.
Some motorists had driven until they ran out of petrol, while others had fallen back on savings, some had availed overdraft, or borrowed from friends and families to pay for fuel.
Of the 23,824 AA members surveyed, 1 per cent had pawned a possession in the past 18 months, with the figure increasing to 4 per cent for 18 to 24 age group.
Further, 1 per cent had taken out a short-term, high-interest payday loan, while 1 per cent had approached their bank for a loan.
According to the AA, the massive petrol price rise over the past 18 months had even affected those from managerial and professional backgrounds.
According to Edmund King president of AA, fuel price desperation had created new and sinister twist to the phrase, 'driven into debt'."
The AA said one in six car owners hit by four petrol price increases in the last 18 month was going into the red.
After the 11 month high of 140.3p a litre in March petrol prices were at 138p a litre today, but drivers still had to pay extra £5 for a small tank of fuel.
King said, young drivers with little capital to fall back on and who were likely to be on lower pay scales were clearly the worst sufferers, as one in 50 of them had put themselves in real financial danger by taking out a payday loan.
The survey also pointed out that one in 50 in the 35-44 age group was also turning to crippling, high-interest lenders to make ends meet.
King added, the drivers were probably saddled with family costs and mortgages or high rents and their predicament was even more disturbing.
