One in Three Use Payday Loan for Mortgages
2 minute read
A report from Mortgage news outlet Introducer Today has suggested that more than one in three people who take out payday loans have done so in order to pay housing costs such as their mortgage. The news is somewhat surprising given the record low interest rates and falling arrears. The figures were taken from the Debt Advisory Centre, and highlights the issue that many users of such payday loan services may be left vulnerable when interest rates begin to rise. Greater examination of the figures reveals that users of payday loans tend to be younger, with the following statistics being revealed.
- 17% of 25-34 year olds have taken a payday loan
- 9% of 35-44 year olds have taken a payday loan
- 3.6% of 45-54 year olds have taken a payday loan
Payday Loans on the Rise?
Statistics from the findings of the Debt Advisory Centre show that payday loans have become a popular financial solution amongst the UK’s population. In total, 3.5m people in the UK have taken out a payday loan in the past year, which represents 7% of the population. Ian Williams, a spokeman for the Debt Advisory Centre quoted, “Many people who are struggling with money problems often put off tackling them – for example, believing that if they can borrow some money this month, then things will be better next month. “However, for a great many people that simply isn’t true: if you have got to the stage where you need to borrow money to buy food or pay the rent, a loan isn’t the solution – it is time to seek expert help with your finances.” Have you ever taken a payday loan to help with your mortgage payments? Leave your thoughts in the comments section below.