Millions rely on credit to pay for home

Posted: January 4, 2012 in Uncategorized

nb. Pay-day loan sharks charge usually between 2000-4000%! It makes me want to weep. – Act of Defiance

A father and baby

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

Our 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.

These results show the spiral of debt that people are falling into in order to keep a roof over their head.

Shelter is warning that the New Year could bring with it a risk of homelessness for people who are struggling with their housing costs.

We are urging anyone worried about their debts to seek early debt advice as their New Year’s resolution.

Campbell Robb, Shelter’s Chief Executive 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.’
Worried about your debts? Get advice now

About the survey

A YouGov survey for Shelter in December 2011 asked 4,014 people in Great Britain if they had used payday loans, unauthorised overdraft, other loan or credit cards to help pay their rent or mortgage in the last 12 months.

One in seven respondents (15%) who took part said yes, representing a national figure of almost seven million people, with almost one million people using payday loans

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s