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Payday borrowing warning

MOUNTING DEBT: Joe Michna from the Citizens Advice Bureau

MOUNTING DEBT: Joe Michna from the Citizens Advice Bureau

DEBT experts in Hartlepool are urging people not to take out payday loans to pay their rent and mortgages as it can make their problems worse.

Hartlepool Citizens Advice Bureau (CAB) issued the advice after research showed almost one fifth of people had borrowed money somehow to cover their rent or mortgage in the last year, including high-interest loans.

Joe Michna, manager of Hartlepool CAB said the issue, highlighted by the homeless charity Shelter, is happening in Hartlepool.

He said: “Clients have resorted to taking payday loans in order to ensure they can pay their weekly rent or rent arrears.

“It is an issue nationwide which we are also seeing in here in Hartlepool.

“Although they may seem like an easy solution in the short term it could have further financial consequences for the clients.

“Some of these loans have very high interest rates. We certainly wouldn’t advise people to take out payday loans if they are having problems with their rent.

Research published yesterday on behalf of the charity Shelter revealed that one in 50 people surveyed had taken out the loans to help cover their rent or mortgage costs.

Mr Michna said responsible landlords and lenders will try to help people with arrears.

The bureau, in Park Road, also runs drop in sessions every Monday, Wednesday and Friday between 9.30am-3pm or call (01429) 408401.

 

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