1m pay mortgage with payday loan

Almost seven million people in total are relying on credit in some form to help pay their housing costs using payday loans, unauthorised overdrafts, other loans or credit cards.

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. It can quickly lead to debts snowballing out of control and can lead to eviction or repossession and ultimately homelessness.”

Martin Lewis, founder of MoneySavingExpert, said: “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.

“While it's an obvious temptation to grasp these loans as a lifeline, in the long run it may hurt more than help. Instead I'd urge anyone struggling with payday loan and housing debts to get in touch with one of the great non-profit, non-judgmental advisors out there, such as Shelter – the sooner the better.”