4th July ‘08 - Struggling Tenants Taking out Loans to Meet Costs of Rent
A poll by moneysupermarket.com has found that around 1.8 million people in the UK are taking out loans to meet the costs of rent and mortgage payments.
Earlier polls and studies have already found that many mortgage holders are taking out loans to meet the cost of payments, however, the revelation that tenants are also being forced to take out loans in order to keep up with rent has some economic analysts worried.
Head of loans and debt at moneysupermarket.com, Tim Moss, commented that he believed the plight of these tenants highlighted a “very serious situation”.
He added, “Having a roof over your head has to be your top priority but to be funding that with a loan you might default on or with a credit card that will eventually charge you interest of over 15 percent isn't the solution in the long term.”
The poll reflects the same trends reported by the Bank of England, which recently announced there had been a 65 percent fall in secured loans for the three months beginning 2008.