Many looking to payday loans to cover mortgage - Loans - News - Moneyfacts


Many looking to payday loans to cover mortgage

Many looking to payday loans to cover mortgage

Category: Loans

Updated: 07/12/2016
First Published: 05/01/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Almost one million people have turned to payday loans to help cover their mortgage or rental costs over the last year.

The worrying research by Shelter shows the level of debt that people are getting into just to keep a roof over their heads.

Figures also show 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 and credit cards.

The findings support recent research by the Post Office which found that millions of people are set to turn to their credit cards to see them through January.

Shelter is warning that the financial pressures of New Year could bring with it a risk of homelessness for people who are struggling to makes ends meet.

"These shocking findings show the extent to which millions of households across the country are desperately struggling to keep their home," said the charity's chief executive, Campbell Rob.

"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."

Find the Best Debt Solution for you - Compare Debt Solutions

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…