Millions relying on credit to pay for housing
Wednesday, 4 January 2012 10:15 AM
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 survey by Shelter.
And the survey also shows that this is just part of a bigger reliance on credit to pay housing costs. Almost seven million people used payday loans, unauthorised overdrafts, credit cards and other loans last year.
Now the charity is warning that the New Year could bring a risk of homelessness for people struggling with their housing costs and urging anyone who is worried to seek early debt advice.
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."
The 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 of them (15 per cent) said yes, which represents a national figure of almost seven million, of whom one million were using payday loans.
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