Use of payday loans to cover mortgage and rental payments rises

New research from the housing charity Shelter has shown millions of people have resorted to unsecured borrowing to meet their monthly mortgage or rental payments over the past year. According to Shelter almost a million people used payday loans to help them pay their mortgage or rent and an additional six million people had to use loans or credit cards. Shelter carried out the research, speaking to more than 4,000 people, following a surge in the number of people telling their debt advisers they had taken out loans to meet mortgage and rental payments. Shelter said the results showed a “spiral of debt ...

Millions turn to payday loans as money worries reach highest level on record

With tight household finances, new research shows that people are increasingly turning to payday loans in order to cover their essential spending and the costs of Christmas. The R3 Insolvency Group , which represents professionals working with financially challenged individuals and businesses ,  have published findings based on interviews with 2,000 people.  Payday loans, also known as microloans, is now a £2 billion business, thanks to people borrowing anything from £50 and £300. Costs are high with charges typically ranging from £13 to £18 in interest for every £100 borrowed, but can be as high as £30 per £100 for some online ...