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One in five can’t afford January rent and will use credit cards or payday loans

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One in five private renters in the UK are unable to pay January’s rent on their regular wages, new research shows.

Instead of paying rent on their paycheck, 20 percent will use other sources of income, including payday loans, overdrafts, friend loans, and credit cards.

While 2.9% of those unable to pay will use their savings, pensions and housing allowances to foot the bill, according to a new study from Spareroom.co.uk shared exclusively with ThisisMoney.

One in five tenants will struggle to pay January rent, resorting to credit cards, loans and payday lenders

Renters using the roommate website were asked how they would make their next rent payment.

Of the 1,003 people who responded, 6.5% said they had no way to pay their rent, while 3.7% would use an overdraft, 2.5% would borrow the money from a friend or parent, 2.5% would use a credit card and 1.7% plan to use a payday loan.

Only 2.9% would use a prize pool, although this includes money saved in a savings account or pension or money they receive from housing benefits and 80.3% said they would be in. able to pay their rent out of their regular salary.

“January is a notoriously bad month for finances, as Christmas has taken its toll on our bank balances and with 45% of landlords considering rent increases in 2016, the outlook looks grim for tenants,” said Matt Hutchinson, director of the SpareRoom roommate site. co.uk.

“Anyone facing unaffordable rent increases should talk to their landlord.

“Most landlords find that the cost of finding a new tenant often exceeds the extra they’ll get by raising the rent and may be willing to negotiate, especially if you’ve been a reliable tenant,” he adds. he does.

One in 10 parents wouldn't be able to pay their rent or mortgage this month

One in 10 parents wouldn’t be able to pay their rent or mortgage this month

One of the reasons for the rising cost of rents is the UK’s shortage of affordable housing, according to a study released by the Shelter charity earlier this week.

It showed that more than 2.5 million parents were cutting back on essential winter expenses such as energy and food to pay their rent or mortgage.

Survey

Are you having trouble with your rent or mortgage?

  • Yes 139 votes
  • No 308 votes

This separate Shelter study showed that one in 10 parents would not be able to afford their housing costs this month.

“As millions of families grapple with sky-high housing costs, it is sadly not surprising that we hear from people every day at the breaking point under the weight of increasing monthly payments,” said Nadeem Khan, Advisor from the Shelter helpline.

“Far too many people are calling us after silently struggling with spiraling housing debt and feeling like they have nowhere to turn. But if you are in this situation, remember that you are not alone and that the help is there, ”he adds.

If you can’t afford your rent or mortgage payments, the first thing to do is talk to someone.

If you are a tenant your landlord may be willing to negotiate and if you own your home the mortgage provider can help, but if you can’t get anywhere try talking to a housing charity like that Shelter.

For people in great financial difficulty, a charity such as Stage change (or call 0800 138 1111), can help you. It’s free to use and can offer tips on how to get out of debt.

SHELTER’S TOP TIPS FOR DEALING WITH RENT AND MORTGAGE DEBT

  • Seek help early: If you’re having trouble paying your housing costs, talk to an expert advisor as soon as possible who can explain your options and advise you on next steps. Visit Shelter (or call 0808 800 4444).
  • Focus on housing costs first: make sure paying your mortgage or rent comes first. The most important thing is to keep your home, even if you receive requests from credit cards and payday loan companies.
  • Take action on mortgage arrears now: Contact your lender as soon as possible if you are behind on the mortgage. They must try to help you.
  • Get help with rent arrears: you miss two rent payments and could face eviction. See if you can apply for housing allowance to help pay the rent.
  • Respond to letters and phone calls. It’s natural to want to keep your head down and hope this will sort itself out on its own, but it’s important to read everything your mortgage lender, landlord, or rental agent sends you. Keep a record of every letter and phone call.

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