Expect more, earn more, be more

Call us on 01244 421 261

1m desperate homeowners resort to payday loans

Posted by on January 9, 2012

Almost one million people have taken out a payday loan to help pay their rent or mortgage in the last 12 months, according to the charity Shelter.

The survey also reveals that almost seven million people in total are relying on credit in some form to help pay their housing costs, using payday loans, unauthorised overdrafts, other loans or credit cards.

The results reveal the spiral of debt that people are falling into to keep a roof over their head.

One in seven respondents (15%) who took part said in its survey admitted they had used payday loans, unauthorised overdraft, other loan or credit cards to help pay their rent or mortgage in the last 12 months. Shelter said this represented a national figure of almost seven million people, with almost one million people using payday loans.

The charity warned that the New Year could bring with it a risk of homelessness for those struggling with their housing costs and urged anyone worried about their debts to make seeking early debt advice their New Year’s resolution.

Campbell Robb, Chief Executive of Shelter, said: “These shocking findings show the extent to which millions of households across the country are desperately struggling to keep their home.

“Turning to short-term payday loans to help pay for the cost of housing is totally unsustainable. It can quickly lead to debts snowballing out of control and can lead to eviction or repossession and ultimately homelessness.

“Every two minutes someone in Britain faces the nightmare of losing their home. We urge every single one of these people now relying on credit to help pay their rent or mortgage to urgently seek advice.”

Notes from Let Alliance:

Letting Agents wishing to discuss our Let Alliance Nil Excess Rent Guarantee Insurance please contact our Account Management Team on 08456 850 475.

Source: www.invetortoday.co.uk

Share this story:

© 2018 Let Alliance Ltd.