One In Ten Reliant On Overdrafts To Pay Their Rent Or Mortgage

Research from comparethemarket.com finds that while most Britons can manage their finances, some are struggling to make ends meet, relying on expensive overdrafts to cover costs. 30% of UK adults have to dip into their overdraft because they have run out of money before the end of the month. Worryingly, one in ten (13%) use their overdraft to cover the cost of their mortgage or rental payments - the equivalent of 1.2 million people. Of these, one fifth (20%) use their overdraft to cover the full payment amount, while a quarter (24%) use it to cover, on average, half of the cost. Read more on Property Reporter.

https://www.propertyreporter.co.uk/finance/one-in-ten-reliant-on-overdrafts-to-pay-their-rent-or-mortgage-claims-new-research.html

Struggling Generation Rent Is Being Driven Into Debt

With a soaring number of tenants falling into financial difficulties as they battle increasing rental costs, charities have identified a “worrying trend” of escalating debt for those who are frozen out of home ownership. Debt charity StepChange says the number of renters contacting it with difficulty paying off debt in the four years to 2015 more than doubled, rising by 139%. The average sum owed is £10,829 each, made up of unsecured debts including overdrafts, loans, credit card debt and rent arrears – which have reached an all-time high of £922. Figures from separate findings by charity National Debtline show that the number of people seeking help with rent arrears doubled, to 14% of callers, over the past five years. Read more on the Observer website.