One million people take out emergency loans to pay mortgage

#1
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.

The high degree of borrowing highlights the “spiral of debt” that people are falling into to keep a roof over their head, Shelter said.

The charity also found that seven million Britons are relying on some form of credit to help pay their housing costs.

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



He said that short-term payday loans, which charge interest rates of up to 4,000 per cent, are a “totally unsustainable” way of borrowing. The loans can “quickly lead to debts snowballing out of control”, said Mr Robb.



Payday loans can be taken out on the high street or online and require minimal credit checks. However high rates of interest mean that people can end up paying back far more than they borrowed if they fail to repay the debts quickly.


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.



One million people take out emergency loans to pay mortgage - Telegraph
So that could be 1 in 4 people using these loans?
 

Rod924

LE
Kit Reviewer
#2
I hate these parasite companies with a passion; feeding off the misery of the recession and subsequent victims.

Just look in most high streets at the shops like cash converters, that ****ing car log book one et al that have sprung up in the last 3 years.

Eeh, get right on my nipple ends!

Sent from my GT-I9000 using Tapatalk
 
#4
I hate these parasite companies with a passion; feeding off the misery of the recession and subsequent victims.
Its beautiful, and far better than borrowing off local sharks and flogging the kids chrimbo presents.

Nothing new in it, just done a different way now there is television and radio advertising.

God bless muppets who cant plan their wedge out to last.
 
#5
Most of these Pay Day loan companies are American. They have been legislated out of the European mainland states, so they have come here. anyone taking out Pay Day Loans to pay rent, mortgage etc are incredibly stupid. They should give up smoking, drinking and fornicating first, they might save themselves some cash.
 
#6
42 Inch Philips LED TV


Check these cnuts out..... the poor and feckless will always be with us, but we should be protecting them from these sort of chancers, I believe you get "fined" as well if you miss a payment.

We went to Argos after Christmas, had a 28in coal fired TV,had it for years, no issues but said what the hell, got a better model 42in than Shitehouse for £290, had cash in the bank.... hell of a difference in cost, almost a tenth.
 
#7
Nothing illlegal in the sites, even though the rates are exceptionally high. As said above if people can't manage to plan their budget for a while then there is no hope for them. They will end up juggling money until something gives and then appear on breakfast TV whingeing about how these sites should be banned.
 
T

trowel

Guest
#8
Nothing illlegal in the sites, even though the rates are exceptionally high. As said above if people can't manage to plan their budget for a while then there is no hope for them. They will end up juggling money until something gives and then appear on breakfast TV whingeing about how these sites should be banned.
There may well be nothing illegal in the activities of these usurers, but we are not living in a country were the weak willed are protected from themselves and the sharks who prey upon them.
 
#9
There may well be nothing illegal in the activities of these usurers, but we are not living in a country were the weak willed are protected from themselves and the sharks who prey upon them.
They are sometimes much cheaper than getting an unauthorised overdraft from a highstreet bank.
 
#10
There may well be nothing illegal in the activities of these usurers, but we are not living in a country were the weak willed are protected from themselves and the sharks who prey upon them.
No we're not.

These payday loan people are bottom-feeding slimers with whom a conversation would be as agreeable as putting your hand into a spittoon, but as someone said, they're not as bad as loan-sharks and it's not illegal to profit from the stupidity of others.
 
#11
Think if I ever get a terminal disease suicide bombing the alternative credit awards would be a more fun way to go than a clinic in Switzerland.
 
#13
Ahh how nice a righteous indignation thread. If anyone is smart enough to calculate the cost of a High street bank unauthorised overdraft you'll find that its hundreds of times more expensive than a short term loan.

A customer borrowing £100 for 28 days without the consent of Santander would repay £200, for example.

That is the equivalent annualised percentage rate, or APR, of 819,100%.
 
#14
Ahh how nice a righteous indignation thread. If anyone is smart enough to calculate the cost of a High street bank unauthorised overdraft you'll find that its hundreds of times more expensive than a short term loan.
Which is why they don't make much from them. The real profits are based on the defaults, the charges for which would make the most heartless and avaricious high street bank look like a big poof by comparison. I think it's more than a little bit grotty to plan in advance to wring a certain percentage of your customers dry.

And no, before any fuckwit starts assuming I've borrowed from them and come unstuck, it's not based on personal experience but a conversation with a City analyst, an old friend of my missus.
 
#16
This really shows where it's all gone wrong.....

Instead of trying to teach those at the bottom of the heap crap like French and Shakespeare in the interests of PC equality, they should be teaching them basic life skills like numeracy and just survival skills in the modern world.... then they might get a job instead of the East Europeans being the favourite candidates.

Bring back the trade schools.
 
#17
Trade schools are a good idea BUT you need a manufacturing base to be able to take the qualified and to make apprentice places, we still have a manufacturing industry but it is now a small part of GDP. So we would end up with thousands of qualified people unable to get a job because the industry is not sufficiently large enough to support it.

One industry that is struggling to recruit are Agriculture especially hill farmers and market gardeners where fresh produce is required to be picked, the former does need some form of education but the latter doesn't it just requires bloody hard work.
 
#18
So, Vinnie, your idea of education is to identify those at the 'bottom of the heap' - and then make sure they stay there?
 
#19
So, Vinnie, your idea of education is to identify those at the 'bottom of the heap' - and then make sure they stay there?
Oddly enough there was more chance of success under the older 'unfair' system of grammars and trade schools than our current 'inclusive' comprehensive edukation.
 

Wordsmith

LE
Book Reviewer
#20
This really shows where it's all gone wrong.....

Instead of trying to teach those at the bottom of the heap crap like French and Shakespeare in the interests of PC equality, they should be teaching them basic life skills like numeracy and just survival skills in the modern world.... then they might get a job instead of the East Europeans being the favourite candidates.

Bring back the trade schools.
That requires politicians and educational 'experts' to acknowledge that a significant percentage of the kids coming through our school system (20%) just don't have the intellect for anything other than a manual career. And acknowledging that fact is half the battle.

I would rather equip those kids for a decent life than see them leave school with paper qualifications that are useless to them. Let's give everyone a fair crack of the whip at giving a decent education, but give them a choice between an academic or practical education at 14. And for those best suited to a manual career, lets give them:

- A grounding in basic English so they can fill in forms, write letters, understand instructions at work, etc.
- A grounding in basic maths so they can understand how to budget their income, how much something brought on a credit card is costing them in interest, etc.
- 'Living skills' such as how to cook a decent meal, how to keep a house in good order, how to care for a baby, etc.

- And most importantly, a marketable work skill such as car mechanic, butcher, hairdresser, florist, etc.

If we don't give the 20% of less academically able pupils practical skills, we're condemning them to a life of unemployment and sh*t living conditions. Given the choice, I'm sure those kids would rather leave school with a decent manual skill, get a stable job and and go through life with a degree of comfort and dignity.

Wordsmith
 
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