Borrowed Money to Cover Housing Costs
A recent survey by the charity Shelter has highlighted how a large number of people have turned to borrowing money to cover mortgage and rental payments – some have even turned to the short-term high interest loans offered by pay-day loan companies. Of the 3,675 renters and mortgage payers surveyed, 19% had borrowed money to cover payments.
YouGov conducted the survey for Shelter, finding that 2% of those polled had taken out a high-interest, short-term loan. Other ways that homeowners had borrowed to cover housing costs was to borrow from family and friends, use unauthorised overdrafts, credit cards or other loans. Two-fifths of those surveyed also said that they would not admit their money problems to family or friends.
Shelter said that it dealt with just under 9,000 calls to its helpline from people struggling to pay their rent or mortgage last year – up a third on the previous year. Campbell Robb, chief executive of Shelter said: “We’re now hearing form a record number 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. Our message today is don’t keep your worries to yourself.”
The advice to those struggling with mortgage payments is to go to your lender, as responsible lenders will help you with a repayment plan. Housing Minister Kris Hopkins disputed the figures but did urge those with money worries to get early help and advice.
Sources: bbc.co.uk, shelter.org.uk (image courtesy of theguardian.com)