payday-loans-used-to-pay-mortgages

Payday loans used to pay rent and mortgages

There is evidence that some homeowners and tenants in rented accommodation are using payday loan companies to pay their rent and mortgages. It was recently though that this only represented a very small part of society but that according to this data there are hundreds of thousands of people funding their rent and loan repayments with payday loans.

The figures will come as a shock to many people who would only ever consider using these companies in an absolute emergency and not to pay for your housing. the data has been provided by Shelter the housing charity who questioned just under 4,000 tenants and homeowners. Of this number 2% said that they had taken out high interest short term loans.

4,000 people take part in survey over finances

Shelter took 9,000 calls from tenants last year Of the people questioned many had borrowed money from friends and relatives to pay for their housing. Others used unauthorised overdrafts and other loan companies to meet their housing costs. According to Shelter this illustrates the high cost of housing in Britain and something needs to be done to help these people stay in their homes.

Shelter said that it had taken 9,000 calls from homeowners and tenants last year who had not been able to pay their mortgages. This is an increase of a third on the previous year. Shelter blamed sky high housing costs and low wages growth that has not kept up with rising rents.

Whilst the economy may be on the mend there are still millions of families struggling to make ends meet because the low growth rate of wages means that any increases in rental costs means that they are unable to meet the monthly rent. This means that some families are being evicted which can be devastating for those families. The government in the meantime commented that they have provided £470m of government funding as a safety net against homelessness.