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1 in 6 had to borrow to pay their rent or mortgage last month

17th December 2014 Print

One in six people had to borrow money to pay October’s rent or mortgage, according to new research conducted for debt advice and solutions provider Debt Advisory Centre (DAC).

People aged 18 – 24 were the most likely to have borrowed money to pay their housing costs, with nearly one in three (29%) admitting to doing so to avoid missing their payment.

According to the survey, one in 12 people (8%) are in arrears with either their rent or their mortgage. Of these:

66% were behind by one month

20% were in arrears by 2-3 months

14% were more than 3 months in arrears.

Ian Williams, spokesman for DAC, says: “Housing is a key priority, so it is extremely worrying to find so many people had to borrow money in October to make their payment. It is certainly a sign that their finances are in crisis and that they need to take action immediately to avoid further deterioration.

“In many cases, people have enough coming in to make their payment but have prioritised other bills – such as credit card or loan repayments. In this case it is important to remember that housing costs should be paid before any unsecured creditors.

“If you are tempted to borrow to cover food, housing costs or utilities, you should seek money advice first. An advisor can help you re-prioritise your budget and help negotiate with lenders on your behalf.”