People in Leeds feeling the pinch should try to avoid payday lenders - Mark Fleet

Out of 765 replies, 67 per cent said the rising cost of living had affected their household 'greatly' or 'extremely'. Just 1 per cent reported the crisis as having had no effect at all.

50 per cent of respondents said their finances were in worse shape than at this time last year. Fewer than 10 per cent said their finances were in better shape compared to 2022.

Nearly two thirds of respondents, 63 per cent, had turned to Leeds Credit Union for a loan to help them navigate the cost of living crisis, with 17 per cent using the money to pay for day-to-day living expenses like food, 15 per cent spending it on clothes and shoes for their children and 10 per cent needing it to pay their rent or mortgage.

Suffice to say that when such a significant number of people in the region are having to rely on loans to make ends meet or to afford necessities like food, this paints an overwhelmingly negative image.

Even more alarming were respondents' replies to the question: what would you have done if you hadn't borrowed from Leeds Credit Union? 44 per cent of respondents said they would have had to go without the item or service they were planning on spending the money on. 29 per cent reported that they would have had to cut back on essentials like food or heating. 22 per cent said they would have had to go into arrears on bills or rent. 16 per cent said they would have turned to a payday lender.

Of all the results, the final one is perhaps the most upsetting, with the high interest rates typically charged by payday lenders likely to result in more financial problems for the person taking out the loan, making the situation worse than it already was.

Furthermore, predatory loan sharks have been known to masquerade as payday lenders to offer short-term loans for small sums of money before charging exorbitant interest rates that can make it extremely difficult to repay the debt.

While there is no quick fix for the financial problems many households currently face - and these results clearly show that the cost of living crisis is continuing to have a major impact on people's finances - hopefully people can take solace in the fact that many reputable financial organisations exist and are available to help them when they need them most.

Needless to say, under no circumstances should anyone suffering financial difficulties be tempted to turn to loan sharks or high-interest lenders to help them through the cost of living crisis. Instead, anyone in need of help should contact their local credit union as soon as possible.

As not-for-profit organisations, they are dedicated to putting people first and serving the communities in which they operate by providing them with access to affordable and ethical loans, savings accounts and specialist money and budgeting services.

Mark Fleet is CEO of Leeds Credit Union.