Don't get caught in the payday loan trap
08/05/2013 12:00 PM
With a difficult economy, unemployment and the Government's reforms to the welfare system, increasing numbers of tenants are reported in surveys (such as this one by Shelter) to be using payday loans to meet their obligations.
The amount spent by payday loan companies advertising their services has rocketed in recent years and the information available to those applying for the loans hasn't always kept pace. A survey by Which? in May 2012 found that:
- A third of people taking out a payday loan found themselves in greater financial difficulty as a result
- 45% of those taking out payday loans were hit with unexpected charges
- 57% of users are encouraged to take out further loans
- 45% 'roll over' their loans into a new loan at least once
There is some useful information and advice on payday loans, and alternative options, available from Shelter.
EastendHomes aims to support our residents in managing their financial affairs. Some residents affected by reforms to Housing Benefit will recently have received a home visit from a trained advisor and other residents will hear from us shortly. The monthly surgery sessions for financial advice continue to be held in our housing centres. And if you fear you may have difficulty paying your rent, contact us as soon as possible to discuss planning the repayment of any arrears.