Thursday, January 5, 2012

2,000% interest just to keep home, Scotland

PAYDAY loans and unauthorised overdrafts have become a common method of paying the rent for up to a million people in Britain, a charity for the homeless has discovered.

Shelter Scotland, which campaigns to help those who have lost their homes or who live in substandard accommodation, found that 2 per cent of the UK population has used payday loans and other forms of credit just to meet their tenancy obligations each month.

In addition, 15 per cent of those questioned admitted being forced to use similar forms of credit in order to pay household bills.

Gordon MacRae, head of communications and policy at Shelter Scotland, told The Scotsman: “Households are doing everything they can to keep the wolf from the door. Thousands are on the precipice.

“Homelessness was once the preserve of the most vulnerable in society, but we are now seeing more people who are in work or who have recently been in work.”

Shelter Scotland said that 41,553 households were accepted as homeless last year – a rise of 25 per cent since 2001 – and this figure included more than 22,000 children. Read More