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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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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."

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