1 million 'used payday loans to pay rent or mortgage in 2011'

By Lucy Bower

Nearly one million people took out a payday loan to cover the cost of their rent or mortgage in 2011, according to the homelessness charity Shelter.

In December 2011, YouGov asked 4,014 people whether they had used a payday loan, an unauthorised overdraft, or any other loan or credit cards for their rent or mortgage payments during the last 12 months. One in seven, or 15% of the respondents said they had.

Taking out additional loans to cover rent or mortgage payments can be a sign of a debt problem. The Shelter survey results equate to a national figure of close to seven million people reliant on loans, of which almost one million people would be using payday loans to pay their rent or mortgage.

According to another recent survey by the insolvency trade body R3, 3.5 million people are considering taking out a payday loan in the first half of 2012. It estimates that nearly half the population (45%) finds it difficult to make ends meet until payday.

The survey also indicates that of the people who did take out a payday loan, 60% regretted it and 48% believed it left them worse off financially.

Image © iStockPhotos / wavebreakmedia

Tags: Payday loans, mortgage, Shelter, loans, credit cards, R3, debt

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