Seven million people are relying on credit to meet housing costs says Shelter

Almost seven million people are relying on credit to help pay their housing costs according to a new survey from Shelter.

The charity has revealed that almost one million people have taken out a payday loan to help pay their rent or mortgage in the last 12 months while others have turned to unauthorised overdrafts, other loans or credit cards to help pay their housing costs.

Shelter says the results show the spiral of debt that people are falling into in order to keep a roof over their head and warned that the New Year could bring with it a risk of homelessness for people who are struggling with their housing costs. It is urging anyone worried about their debts to seek early debt advice as their New Year’s resolution.

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.

“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.”