Despite inflation easing in recent weeks, demand for affordable short-term credit options remain high, and 15 per cent of the UK population will likely need to borrow to get by over the next six months, according to new research by responsible lender Creditspring.
With around 7.6 million UK adults needing to borrow money in the next six months, Creditspring has revealed that, since its launch in September 2018, it has provided over £500million in affordable short-term loans to borrowers.
During Q1 2025, Creditspring members borrowed £58.8million, representing £14.1million more than the same period in 2024. In total, Creditspring has provided over 1.1 million borrowers with affordable credit since launch.
In 2024, Creditspring provided £207million in affordable loans – an increase of 63 per cent compared to the £127million lent to members in 2023.
Creditspring’s Netflix-style subscription finance model offers access to no-interest loans with clear repayment terms, capped total costs and no hidden charges, late fees, confusing interest rates or risk of debt spirals.
“There is huge appetite for affordable, transparent and simple solutions that offer access to short-term when borrowers need it without putting their future financial stability at risk,” explained Neil Kadagathur, co-founder and CEO at Creditspring. “Demand for financial support is only going to increase over the next few months as households struggle with the impact of rising costs such as energy bills, council tax and TV licences.
“Without access to affordable, short-term credit millions of households will be faced with little alternative but to turn to predatory lenders. Creditspring’s transparent and inclusive solution improves access to affordable credit options and continues to provide a lifeline for millions of people across the UK.”
Breaking the mould
Despite the support Creditspring offers, 35 per cent of people say they still don’t know where to turn to get short-term, low-cost loans at an affordable rate. This lack of access to affordable credit options risks driving borrowers towards expensive options or even illegal lending as they struggle to make ends meet.
Borrowers are also calling for more transparency from financial providers – 56 per cent say lenders make terms and conditions deliberately difficult to understand. Recognising this, Creditspring launched its Benefits Finder in Q4 2023 to help ensure users have access to all the available financial support they may be entitled to but have yet to claim by identifying benefits they may be eligible for.
Since launch, the tool has located £2.1billion in additional financial support. On average, the tool finds that individuals could claim £982 per month in additional financial support.
Creditspring’s model offers an FCA-regulated 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 total costs and no hidden charges, late fees, confusing interest rates or risk of debt spirals.
