According to new figures, over the past year more than half a million low earners have had to turn to unsecured borrowing via credit cards, overdrafts and other sources to cover monthly rent payments.
This data was published by housing charity, Shelter, who have said many renters are having to take on dangerous debt due to desperate efforts to keep a roof over their, and their family’s heads.
Of the 1.6 million renters who fall into the low earner category, 1 in 3 (511,000) of these have turned to other forms of borrowing to pay their rent. The majority, 299,000, have used their overdrafts, which not only means they are in a worse off position the following month but will also face accompanying interest or fees for using the service. 57,000 turned to loans from a bank or building society, and 42,000 used payday loan services and their extreme interest rates, despite recent price cap laws.
Worryingly, this number is not considered to be truly representative of the number of people in rented accommodation who are struggling to make their monthly payments. The charity stated that they expect the number to be relatively higher as there was a significant number of people surveyed who declined to disclose their financial situation and were therefore excluded from the study.
It is believed that around 800,000 of low income renters are on such tight budgets that they are not able to save £10 per month. No family should have to choose between keeping a roof over their heads or falling into debt by relying on credit cards or overdrafts.
If you have fallen into unmanageable debt and are struggling to get out, please contact us today! We can help you find a solution – you are never alone. Click here to contact us or call Clive on 01656 661426.