1 in 5 are borrowing cash to pay for their homes
According to new figures from Shelter, the financial situation for many is so dire that one in five people are borrowing cash to pay their rent or mortgage.
Their survey of 3500 people revealed that they’re not just occasionally borrowing from someone they know to pay the rent – they’re getting into a mess with unauthorised overdrafts, credit cards or – YIKES – payday loans.
2% of those asked had taken out a short term high interest loan to meet housing costs, and if that figure was replicated across the whole of the UK, that means 1 million people are paying their mortgage or rent with Wonga money at 364642838346438393% APR.
Last year Shelter helped around 9000 people who were getting into rent and mortgage arrears, which is 2000 more than in 2012, but the nature of the problem is that many people won’t admit that they can’t afford their homes, and end up spiralling into debt.
Campbell Robb from Shelter said:
'We're now hearing from record numbers of families up and down the country who are desperately struggling to keep the roof over their heads. But the truth is, we're more worried about the people we don't see.’
Shelter advise anyone struggling to pay their mortgage or rent to contact them before the situation gets to crisis point. But with rents so high and wages so low – isn’t a crisis inevitable?