A recent study by the Association for Responsible Non-Banking Lending (AONK) shows that nearly a quarter of Bulgarians have used quick loans at least once in their lives. The findings were presented by the organization’s chairman, attorney Nikolay Tsvetkov.

The research indicates that most borrowers, 84%, have taken out up to three quick loans, and roughly three-quarters of these loans were for sums ranging between 500 and 2,000 leva. Contrary to common belief, 74% of respondents reported they did not take a new loan to repay an existing one, challenging the notion of a widespread “debt spiral” in this segment of financial services.

Quick loans are primarily used to cover household and medical expenses, though there is a growing trend of using them for consumer purchases such as equipment, gifts, and vacations. Tsvetkov noted that this shift has been observed in previous studies, suggesting that loans are increasingly sought for discretionary spending rather than urgent needs.

The survey also highlights that many borrowers do not fully review their loan contracts. One in ten admits they did not read the contract at all before signing, while nearly half only examined the main points. At the same time, over 92% said they received all necessary information from the credit company when requested. Experts recommend comparing offers from multiple lenders and consulting the standard European form, which outlines all loan terms and costs, to make informed decisions and avoid repayment difficulties.

Demographically, the study found that quick loan users are mostly aged between 30 and 40, active in the labor market with steady incomes. Men slightly outnumber women at 52% to 48%, and most borrowers live in regional or medium-sized cities. Approximately two-thirds have secondary or specialized secondary education, with a significant portion holding higher education degrees.

Problem loans remain a small share, indicating that lenders are generally effective in assessing clients’ creditworthiness. However, experts caution that many borrowers do not verify whether the lending institution is registered with the Bulgarian National Bank, a crucial step for ensuring legal compliance and regulatory oversight.