The report found that people aged 18–24 were the most likely to have borrowed money to pay their housing costs, with 29% of those asked admitting to doing so to avoid missing their payment.
According DAC’s survey, 8% are currently in arrears with either their rent or their mortgage. Of these, 66% were behind by one month; 20% were in arrears by 2-3 months; and 14% were more than three months in arrears.
Ian Williams, DAC spokesman, said: “Housing is a key priority, so it is extremely worrying to find so many people had to borrow money in October to make their payment. It is certainly a sign that their finances are in crisis and that they need to take action immediately to avoid further deterioration.
In many cases, people have enough coming in to make their payment but have prioritised other bills – such as credit card or loan repayments. In this case it is important to remember that housing costs should be paid before any unsecured creditors.
If you are tempted to borrow to cover food, housing costs or utilities, you should seek money advice first. An advisor can help you re-prioritise your budget and help negotiate with lenders on your behalf.”
