Recent surveys produced by YouGov and Shelter show hundreds of thousands of people are taking out payday loans to meet their housing costs.
The report, which surveyed just over 3,500 respondents, showed that 2% had taken out the high interest loans to secure their housing. This figure alone is staggering if scaled to the UK as a whole, but further to this 20% had borrowed money to pay for housing, predominantly using credit cards. Other common means of payment included overdrafts and loans from family and friends.
With stagnating wages and the constant rise in the cost of living, it is not difficult to see why people are turning to such options. Of those surveyed Shelter found that a quarter would be too ashamed to speak to anyone concerning their financial problems. Shelter CEO Robb Campbell was quick to point out this major issue ‘Our message today is don’t keep your worries to yourself”. Continuing on from this Housing Minister Kris Hopkins urged that anyone with financial troubles should seek advice immediately; responsible lenders can be negotiated with.
Although startling figures if you are struggling to pay your rent or mortgage then please do not hesitate to get in contact with us for free professional, trusted advice. We are proud to have a specialised personal insolvency team who will talk to you about your situation, even without any personal details.