Almost one million people have taken out a payday loan to help pay their rent or mortgage in the last year, according to a new survey from housing charity Shelter.
The YouGov survey also found that almost seven million people in total are relying on credit in some form to help pay their housing costs, using payday loans, unauthorised overdrafts, other loans or credit cards.
Shelter is warning that the New Year could bring with it a risk of homelessness for people who are struggling with their housing costs and is urging anyone worried about their debts to seek early debt advice as their New Year’s resolution.
The YouGov survey for Shelter in December 2011 asked 4,014 people in Great Britain if they had used payday loans, unauthorised overdraft, other loan or credit cards to help pay their rent or mortgage in the last 12 months.
One in seven respondents (15%) who took part said yes, representing a national figure of almost seven million people, with almost one million people using payday loans.
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.