Households struggling to pay their rent or mortgage each month up by 44 per cent

More and more householders are resorting to payday loans and unauthorised overdrafts to pay their rent and mortgage.  A new survey for Shelter suggests that the number of people struggling with their housing payments increased by almost half last year, to 7.8million.

Nearly a million and a half people are behind with the rent or mortgage according to the survey.  Some 2.8 million people used an unauthorised overdraft at some point during the year – with ten per cent of that number doing so every month.

Almost a million people took out a payday loan to help with the payments.  The research, by YouGov, backed up a number of other surveys during 2012 which consistently demonstrated that payday loans are being used for essential day to day household expenses.

Debt Advice Foundation chief executive David Rodger commented: “These findings mirror the experience of our callers.  They are struggling with their core bills – housing, food, fuel, council tax – so the smallest additional bill can tip them into debt. 

“And of course the extra spending over Christmas and New Year will have made their situation even more difficult.”

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