Almost one million Britons have taken out an emergency ‘payday’ loan to help pay their rent or mortgage in the last year, according to Shelter, the housing charity.
Martin Lewis, an executive at MoneySavingExpert.com, said: “It is incredibly worrying that there is now evidence that people are using payday loans to meet housing costs. While it is an obvious temptation to grasp these loans as a lifeline, in the long run it may hurt more than help.”
Household bills are set to rise further this year, which could push people further into debt.
The rising cost of energy means that householders on standard gas and electricity tariffs could receive a quarterly gas and electricity bill of £514 next month, according to MoneySupermarket.com, the price comparison website.
“The start of a new year is an expensive time as consumers deal with a festive financial hangover. A huge energy bill will come as an additional nasty shock,” said Scott Byrom of MoneySupermarket.com.
Shelter’s findings were based on a YouGov survey of over 4,000 people.
*reported by telegraph.co.uk*