New research from Shelter shows that 1.4 million people are falling behind with their rent or mortgage payments.
The number of people struggling to keep up with their repayments has increased by 44 per cent over the past year equating to 7.8 million people who face a monthly battle to keep a roof over their heads.
Many people are turning to short-term, high interest credit as a way to help meet housing costs but Shelter warns that this is dangerous.
The research found that almost one million people (2.5 per cent of those that pay rent or a mortgage) used a payday loan to help pay for their rent or mortgage. While 2.8 million people (7 per cent of those that pay rent or a mortgage) used an unauthorised overdraft to help pay their rent or mortgage, and of those 10 per cent did so every month.
Mandy is a mum of three from West Sussex who had fallen behind with her rent and in desperation she took out a payday loan. She said: “I felt I had to take out the loan but found I couldn’t pay it back the next month. It’s just made everything ten times worse. I am at my wits end and it can just feel completely hopeless.”
Campbell Robb, Shelter’s chief executive, said: “Payday loans may seem like a quick fix, but the huge interest charges mean things can quickly spiral out of control. We know it can feel like there’s nowhere to turn to but no one has to struggle alone – Shelter can help.
“It’s vital that anyone who’s having difficulty paying their rent or mortgage gets advice now. Don’t wait until things reach breaking point later in the year – it could leave your family’s home at risk.”
Shelter is urging anyone struggling with their housing costs to seek advice early at shelter.org.uk/housinghelp to help them get on top of their payments and stay in their home.
Loading ...