Don’t use payday loans to pay rent
July 5, 2013
Renters are being warned not to turn to high street payday loans to help keep up with their rent payments. Resorting to drastic measures to keep up with rent is not desirable as payday style loans typically charge high interest rates and could end up putting the renter into a debt spiral.
News of tenants turning to payday loans to pay the rent is extremely worrying for the industry as a whole.
Tenants often see payday loans as an easy and credible way to borrow, especially as many don’t conduct credit checks, but the reality is that failure to repay the loan may push some into a spiral of debt and significant arrears with their landlords, which ultimately could lead to eviction proceedings.
We urge tenants not to use payday loan companies to pay the rent and for landlords to check for signs of tenant financial difficulty.
Tenants should first look at how they could reduce their monthly outgoings, without the need for borrowing, as it is important to make sure that they maintain a stable financial base.