New Year rent and mortgage crisis for millions
03/01/2013
One in 11 people are living in fear that they will not be able to meet their household bills such as rent and mortgage payments in January following the costly Christmas period, according to charity Shelter.
Despite signs of a recovering economy, many are still facing personal financial crises due to wage freezes, rising food and energy bills. Of those affected, families with children are struggling the most 70% struggling or falling behind with payments. Furthermore, more than one in three people in general are expecting to struggle or fall behind on their rent or mortgage payments over the next 12 months.
Campbell Robb, Chief Executive of Shelter, said "It's a worrying sign of the times that so many of us are starting the New Year worried about how they'll pay their rent or mortgage in 2014.
"Unless they get help, some of the families struggling now could face the very real prospect of losing their home this year."
Even more worrying, 18% of those surveyed admitted to not opening post if they thought it might be a bill or late payment reminder, demanding money, whilst 14% even admitted to throwing away this post without opening it.
Liz Clare, a helpline adviser at Shelter, said: "We all know how difficult it can be to face up to financial problems and we often hear from people who've been avoiding urgent post, but the reality is that not confronting it means things can spiral out of control."
However, housing minister Kris Hopkins argued there were still positives in the current economic climate by claiming that interest rates were down, rent rises have been below inflation and mortgages are more affordable as a result of the current government’s efforts to tackle the UK’s deficit.
Furthermore, Hopkins went on to say “mortgage arrears are at a record low and repossessions at their lowest level since records began in 2008."
Need Advice?
If you’re need to ask a financial question then please contact our financial advisers online or over the phone to get help with your query.
Share this..
Related stories
Is the UK car scrappage system value for money?
The consumer magazine Which has today stepped into the debate regarding the UK government's car scrappage system and whether it truly does offer value for money. Under the scheme, motorists will be able to scrap their old cars (in excess of 10 years old) and receive up to £2000 off a new vehicle, which will be funded by the government and car manufacturers. However, the Which magazine has found t...
Read MoreComplaints to water companies fall for 7th consecutive year
18/09/2015 Complaints to water companies fell by 13.4% this year, which is the seventh year in a row that complaints have fallen. The Consumer Council for Water revealed that suppliers in England and Wales faced 106,693 complaints in 2014-15, which is a 13.4% drop on the previous year. The majority of the complaints (60%) were about billing and charges. The Consumer Council for Water has...
Read MoreAmazon hits the UK grocery market
After dominating the UK online shopping market, Amazon has today opened its own grocery delivery business in direct competition with the likes of Tesco, Asda, Morrisons and Sainsbury's. From today, 20,000 different items will be available via the grocery business including products such as tea, crisps, spices, biscuits and pasta to name but a few, which will be delivered directly by Amazon. Fresh...
Read MoreRoll Up Roll Up For Gordon's Next Giveaway
It seems that Gordon Brown's plan to give more that 7 million families in the UK a £150 one-off winter payment to assist with the rising cost of living has been released into the public domain ahead of time. If the stories are correct it looks as though families who receive child benefit will be in line for the early Christmas present. But will this be enough to turn the tide?
Th...
Ryanair responds to EU directive regarding hidden charges
As we covered in one of our recent posts, Ryanair was looking at potential fines and penalties from the EU with regards to so-called hidden charges on the company's website. However, after a discussion with the UK Office of Fair Trading (OFT) Ryanair has today agreed to make its charging structure more transparent and easier to understand.
The issue recently came to a head after a f...