1m using payday loans to keep roof over head

Posted in 'Dealing with Debt' by Barry Stamp

04 January 2012

A survey commissioned by Shelter last month asked 4,014 people if they had used payday loans, unauthorised overdraft, other loan or credit cards to help pay their rent or mortgage in the last year. One in seven respondents said yes, which if the survey respondents are representative of the UK, means that almost seven million people sought financial help, and almost one million people used payday loans.

Shelter warns that 2012 could bring with it a risk of homelessness for people who are struggling with their housing costs and urges anyone worried about their debts to seek early debt advice.

Campbell Robb, Shelter’s CEO commented, ‘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.’

Early in December we gave advice for anyone thinking of taking out a payday loan - there is no doubt that these are growing fast and it’s important to know the basics and how to find the cheapest deal.

Our free Debt Advice Centre gives clear, plain English advice on how to deal with debt stress.