UK relies on credit for mortgage and rent payments
According to Shelter, the UK based charity, Brits have relied on credit agreements, such as payday loans, to cover their mortgage and rent payments over the past year.
The figures released by the charity showed that nearly one million Brits had looked at payday loans as a solution to their financial concerns, using the products to help them cope with key expenses like rental costs and mortgage repayments.
The charity warned that this habit could be putting households at risk of debt, with loans such as these only being intended for short term use.
This means that the loans will typically have a high interest rate – something which is manageable for a single use but difficult to sustain with long term borrowing.
Of course, there are plenty of alternatives to payday loans and households which are facing difficulties this year could use numerous products to help cover their living costs.
Examples of these include prepaid cards, which allow individuals to take control over their finances whilst reducing their chances of experiencing debt.
One recent offer has seen a free Orange cash card offered to customers when they load £20. This offer will only be applicable for one month, closing on February 29th.
The benefits of the card do not end their either, with a generous rewards system accompanying the card.
The system sees one point accrued for every pound which is spent. These points can then be used to top up Orange mobile phones – helping money to go even further.
The card incurs a nominal application cost but is free to use following this. There are no monthly fees or transaction costs for customers to contend with either, helping them to manage their finances effectively and without worry.
Loading money onto the card is also free and can be completed within an Orange shop or online – using a debit card. Topping up the card from a Post Office or Pay Point is another option, but will see a small fee incurred.