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One million people in Britain have taken out emergency payday loans so they can make payments on their mortgage or rent in the last 12 months. The shocking findings from Shelter, the housing charity, have revealed that people are struggling to make ends meet and are increasingly turning to dangerous, high interest loans as an alternative. Almost one million people are running the risk of spiralling into debt just to keep a roof over their heads. It’s not just payday loans that pose a threat though. The charity also found that a staggering seven million UK adults are using credit in some form to help pay their housing costs. “These shocking findings show the extent to which millions of households across the country are desperately struggling to keep their home,” said Campbell Robb, Chief Executive of Shelter. “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,” added Robb. “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.”
There are a growing number of households facing repossession in the New Year as personal finances continue to rapidly vanish under the current economic climate. The Council of Mortgage Lenders (CML) has forecast that a massive 45,000 homes will be repossessed in the next 12 months, which is a dramatic increase on the estimated 37,000 for 2011. If you are experiencing debt problems, you could seek help and find a suitable debt management solution for you. Compare debt management solutions with Money Expert.
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