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05 January 2012
According to recent research for Shelter, one in seven Britons has turned to credit (that is, an unauthorised overdraft, credit card, payday loan or other loan) to help pay their rent or mortgage over the last year.
Campbell Robb, 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."
The YouGov survey for the housing and homelessness charity conducted in December 2011, also showed that almost one million people use payday loans to pay for their mortgage or rent.
Robb went on to add: "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."
"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."
Facing up to debt and seeking help to tackle it as soon as possible certainly seems to be the message for early 2012, as recently, The Insolvency Service focused their attention on helping young people do just that via the 'Dealing with your debt' campaign.
And, it looks like short-term borrowing may go up before it comes down. Last month the insolvency trade body R3 made the prediction that payday loan companies will see an increase in demand over the coming months.
ENDS
Article reproduced with the kind permission of Shelter. Sourced: 2012-01-05
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