Many people across the UK are turning to ‘payday’ loan companies to meet their monthly household bills.
A recent survey revealed of the 3,675 people asked to take part, who were a mixture of renters and property owners, had taken high interest loans during 2013 to cope with the rising cost of house hold bills. A majority of the payday loans taken, were to help keep up with credit payments.
Payday loans are designed for short terms loans, but then also aimed at people that could default to increase the loan fees which the penalties that be incurred. Payday loans are currently a big topic subject of a Competition Commission probe.
For others that were also questioned in the survey, those that didn’t look at taking short terms loans asked for the help of friends and family members, or even going into unauthorised overdrafts which again would increase costs due the penalties that banks will then apply.
The survey was conducted by YouGov on behalf of Shelter with a total of over 4000 adults being questioned and a quarter saying that they would be too embarrassed to ask for the help of friends and family.
During 2013, Shelter dealt with over 9,000 calls who were struggling to pay rent and mortgage arrears, with Campbell Robb of Shelter commenting ‘sky high housing costs stagnating wages and the high cost of living is beginning to take its toll’
With record numbers of people getting into financial difficulties people are being advised not to keep this to themselves and that there are people that can help. The economy is improving and rents for properties are beginning to fall. Repossessions and evictions are also being kept to a minimum under the government’s long term economic plans. £470m of central government funding has been made available to combat against homelessness.