Nearly one million people used Payday loans to pay mortgage.

Nearly one million people used Payday loans to pay mortgage.

Latest results of a YouGov survey of over 4,000 people and subsequently interpreted by the housing charity ‘Shelter’ is suggesting that nearly one million Britons have taken out an emergency ‘payday’ loan in order to help them pay for their monthly rent or mortgage during the past 12 months.

In a synopsis of the report Shelter said that the high degree of borrowing or “spiral of debt” highlights that people are falling into to keep a roof over their head.

Their report also suggests that some seven million Britons are in fact relying on some form of credit to help them pay their housing costs on a regular basis.

Campbell Robb who is Shelter’s chief executive, said: “These shocking findings show the extent to which millions of households across the country are desperately struggling to keep their home.”

He went on to say that short-term payday loans, which charge interest rates of up to 4,000 per cent, are a “totally unsustainable” way of borrowing and that the loans can “quickly lead to debts snowballing out of control”.

Worryingly Payday loans are a growing way for people to access money quickly as they require minimal credit checks and they can be taken out on the high street or online.

Due to the high rates of interest charged on Payday loans means that people can end up paying back far more than they borrowed especially if they fail to repay the debts quickly.

Martin Lewis, from MoneySavingExpert.com, commented on the report issued by saying: “It is incredibly worrying that there is now evidence that people are using payday loans to meet housing costs. While it is an obvious temptation to grasp these loans as a lifeline, in the long run it may hurt more than help.”

The start of a new year is an expensive time as consumers deal with a festive financial hangover and with the continuing rising cost of energy means that householders on standard gas and electricity tariffs could receive a quarterly gas and electricity bill of £514 next month.

The grim fact is that UK household bills are set to rise still further this year, something which could push people further into debt.

If you’re experiencing trouble and are looking for help to squash your monthly mortgage cost why not see if we can help….!