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Written by rosalind renshaw

Almost one million people have had to take out a payday loan at 4,000% within the last year to pay their rent or mortgage.

In total, seven million borrowers and tenants are relying on some form of credit to pay their housing costs.

As well as payday loans, struggling borrowers and tenants are taking out unauthorised overdrafts and other loans, or using credit cards.

A survey carried out by YouGov for Shelter last month asked 4,014 people if they had used these forms of credit to help pay their rent or mortgage in the last 12 months.

One in seven respondents (15%) said yes.

Campbell Robb, chief executive of Shelter, said: “These shocking findings show the extent to which millions of households across the country are desperately struggling to keep their home.

“Turning to short-term payday loans to help pay for the cost of housing is totally unsustainable.”

Martin Lewis, of MoneySavingExpert.com, said: “The UK is the crock of gold at the end of the rainbow for the world’s payday lenders.

“They’ve been regulated out of other countries and jump for joy at our lax supervision.

“That’s why these 4,000% APR lenders are exploding across British high streets. Yet these astronomical APRs aren’t the real danger – that comes from the rollover. This is where people can’t repay at the end of the month and compound interest kicks in.

“It’s incredibly worrying there’s now evidence of people using payday loans to meet housing costs. Many struggling with core rent or mortgage commitments will struggle to repay payday loans on time too.”


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    The information on payday loans is really true and I agree with them totally. The best thing is it is beneficial for all the people and because of this reason I suggest to read this information.
    payday loans for bad credit

    • 06 June 2012 11:26 AM
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    • 17 February 2012 10:26 AM
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    did you know that the owner of Wonga.com is an advisor to David Cameron & donor to the Conservatives…?!?!
    Absolutely amazed but then if you have financial problems such as this government has inherited, it does stand to reason that you would enlist the help of the biggest legalised loansharking company in the country to help you!

    What brilliant advice and an excellent example to be setting to our young society; that if you're in debt, to simply get out of it why not take it from a bloke that cons millions people out of loans at 4,000% – sounds perfectly logical to me…!

    • 05 January 2012 14:19 PM
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    I am completely astounded that no-one has yet commented on this. Admittedly the headline figure is obviously an extrapolation from 4014 respondees to the entire UK adult only(presumably!!) population.

    But if that statistic stacks up then there are an awful lot of households out there really slipping below the waterline and at a time of relatively low interest rates.

    What on earth figures would be produced if this survey was repeated in February and after people have been unable to pay credit cards off post Christmas.

    If true these are truly frightening statistics and findings. The comments about the lax regulation in this country is of course 100% accurate.

    A saddenining opening item for 2012

    • 05 January 2012 12:37 PM
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