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January 4th, 2012 
FAKE NEWS for the Zionist agenda
By
Becky Barrow
Last updated at 12:36 AM on 4th January 2012
Around one million Britons have taken out a payday loan to pay their mortgage or rent over the last 12 months, a survey reveals.
It highlights the financial squeeze facing workers who are being pushed over the edge by soaring household bills, rising taxes and paltry pay rises, or pay freezes.
The report, from the homeless charity Shelter, said a further six million people are being plunged into debt in other ways in order to pay these essential bills.
In too deep: Soaring household bills are forcing people to take out loans to cover their mortgages, according to the report (Posed by model)
They are using unauthorised overdrafts, personal loans or credit cards to pay their housing costs – rather than face being evicted from their home.
Campbell Robb, chief executive of Shelter, said: ‘These shocking findings show the extent to which millions of households are struggling to keep their home.’
He said a payday loan is ‘a totally unsustainable’ way to pay for basic bills, such as a monthly mortgage repayment, because they can ‘quickly lead to debts snowballing out of control’.
Mr Robb added: ‘It can lead to eviction or repossession and ultimately homelessness.’
These controversial loans are meant to tide people over with a small sum of money – perhaps £100 – for a short amount of time until their next pay packet arrives.
Out of their depth: Applicants can quickly receive £1,000 – but then be stung by massive interest charges (Posed by models)
In practice, with interest rates as high as 4,000 per cent, it can fuel a spiralling debt problem for people who simply see their debts get bigger and bigger.
Consumer groups attack payday loan companies, an industry which is worth around £1billion a year, for making it dangerously easy to borrow money.
For example, some companies offer to transfer up to £1,000 into your bank account just 15 minutes after applying for the loan.
Martin Lewis, founder of the website MoneySavingExpert.com, said: ‘It is incredibly worrying that people are using payday loans to meet housing costs.
‘Many struggling with rent or mortgage commitments will struggle to repay payday loans on time too.
‘It is an obvious temptation to grasp these loans as a lifeline, but in the long run, it may hurt more than help.’
He slammed Britain for allowing payday loan companies to open in this country, offering such ‘astronomical’ interest rates while they have been ‘regulated out of other countries’.
The Shelter report is based on interviews with more than 4,000 people last month. It found 15 per cent had used debt to pay for their rent or mortgage over the last year, including two per cent who had used a payday loan.
Experts say many people find their debts particularly difficult to manage at the moment because they had expected to receive pay rises, which have not come about.
Public sector workers are receiving a two-year pay freeze if they earn £21,000 or more, while most private sector workers are getting a pay rise which is around half the rate of inflation.
Joanna Elson, chief executive of the Money Advice Trust, the debt advisers, said: ‘Traditionally when young people have borrowed money it has been with the expectation of a continual rise in earnings over coming years.
‘Young people of today may have borrowed with the same expectations, but the difference is that those expectations have not been realised, leaving many struggling to meet agreed repayment plans.
‘At the same time it is getting more expensive to fill up the car, heat the home and put food on the table.’
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