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Loans Used to Stay Sheltered

Written By On 15/01/2014

Charity group Shelter say that the amount of people in the UK turning to some sort of loan in order to meet their monthly mortgage or rental commitment continues to increase.

The organisation says that nearly nine thousand people last year needed their help to cope with the payments as opposed to under seven thousand in the previous year.

They conducted their own research to back this up and surveyed over three and a half thousand individuals. The results revealed that nearly one in five owned up to using a desperate loan measure to pay their monthly due mortgage or rental amount in 2013.

These methods included credit cards, a non-approved overdraft facility and loaning from family or close friends.

Approximately seventy of the interviewees, which pro-rata equates to around one million British individuals, admitted using a payday loan or short term advance to satisfy their obligation.

The charity said that the report suggests that one in four people would be too embarrassed to seek any help in keeping up with the payments. They also believe that four out of ten surveyed feel too awkward to admit that sort of financial problem to anyone close.

Shelter believe there are many more and adviser Liz Clare commented,

Times are tough, and we often hear from people who've reached crisis point, because they haven't felt able to ask for help earlier. Taking the first step to ask is difficult, but advice from an expert early on can make the difference between losing your home and keeping it.

Housing minister Kris Hopkins questioned the data and said:

The report is based on a small number of calls to their hepline. Repossessions and evictions have been kept down by the Government's long term economic plan. People with money worries need to get early help and advice so they have the most options available to them.