Cashfloat has revealed research about how poor people who are struggling to pay for basic necessities often pay more for simple items. Cashfloat conducted this research as a further effort to understand their poorest customers living in the UK. Some of the startling results showed how much poor people pay due to a lack of bank accounts, cars and washing machines.
– Buying a basic microwave can cost two and a half times the price of a higher quality model, in the long run
– Poor people pay at least 5p more on washing powder for each wash
– It costs 40% more to buy an orange in a local shop than in the supermarket
– Poor people pay enough in rent over 20 years to buy a house
The poverty penalty caught the attention of Cashfloat’s researchers as they strive to understand the struggles and issues that payday loan customers are dealing with on a day-to-day basis.
“We did this research because we really want to help people, so we looked at what their problems are,” says Jeremy Lloyd, Director at Cashfloat. “We were a bit horrified at what we discovered. We all know that living in poverty is difficult, but the idea that saving money is too expensive is shocking!”
The research includes two in-depth case studies. Additionally, Cashfloat’s researchers conducted on-the-spot interviews in places that poor people frequent, such as the local launderettes and cash converters. The team at Cashfloat are constantly striving to understand their customers better, so they can help UK citizens improve their financial situation in the long run.