Brits rely on unsecured credit for housing, says research

Millions of Brits have come to rely on unsecured credit in order to meet the costs of their housing, according to new research findings from national charity Shelter.

The research survey, which was conducted by YouGov on behalf of Shelter, polled in excess of 4,000 adults in the UK, discovering that the equivalent of nearly 7 million Brits are relying on short term loans, credit cards, personal loans, or unauthorised overdrafts in order to pay their mortgage or rent.  Out of this figure of 7 million, approximately one million have taken out instant cash loans from a payday lender, though some have cautioned against taking such steps on a regular basis.

Chief executive for Shelter, Campbell Robb, expressed shock at the research findings, adding that individuals who turn to short term loans to aid in paying the cost of their housing will soon find that doing so quickly becomes unsustainable, as doing so can swiftly lead to personal debt ballooning out of control, and can even lead to repossession or eviction.  The final end result, Mr Robb cautioned, could be as dire as homelessness, and he urged that anyone currently relying on credit to aid in paying their mortgage or rent to seek the advice of a debt counselor.

In related news, Spain-based High Street bank Santander recently announced its unauthorised overdraft fees have been doubled.  This means that, for many banking customers who rely on unauthorised overdrafts regularly in order to make ends meet, doing so has just become twice as expensive.

However, industry experts point out that in many cases it can be much more affordable to take out short term loans instead of relying on an unauthorised overdraft, as it can cost less to repay the loan as it can to pay the overdraft fees charged by your bank.

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