Spiral of Debt Continues As More Taking Out Loans To Pay Mortgages

Of concern to debt experts is that more people who can’t afford to pay their mortgages on time are resorting to extreme measure in order to do so. For example, according to figures from one homeless charity, almost one million people have taken out Payday loans in the last year to pay their mortgage. Millions more have used unauthorized overdrafts or credit cards in order to pay their mortgages. Payday loans can prove very costly, especially from people who can least afford to pay back their debts, as interest rates on these loans are exremely high. Anyone struggling to pay their housing costs should seek immediate help, otherwise they will get caught up in a spiral of debt. If not we may see further rises in mortgage possession claims.