Millions rely on credit to pay for home

Over the past 12 months, almost one million people have taken out a payday loan to help pay their rent or mortgage, according to a new Shelter survey.

The survey also reveals that almost seven million people are relying on credit in some form to help pay their housing costs. As well as payday loans, people are also relying on unauthorised overdrafts, other loans or credit cards.

These figures have been worked out on the basis that one in seven (almost 15%) of the 4,014 people who took part in a YouGov survey for Shelter in December, said they had used some form of credit to help pay their rent or mortgage in the past year.

Shelter is warning that the New Year could bring with it a risk of homelessness for people who are struggling with their housing costs.

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

“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.”