Householders pay bills on credit

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UP TO half a million people in the West Midlands could be relying on payday loans, overdrafts and credit cards to help pay their rent or mortgage, a new survey has revealed.

Homeless charity Shelter said its findings revealed the spiral of debt people were falling into just to keep a roof over their heads.

And it warned 2012 could bring with it a risk of homelessness for those who were struggling with their housing costs.

Chief executive Campbell Robb said: "These shocking findings show the extent to which thousands of households across the West Midlands are desperately struggling to keep their home.

"Turning to short-term payday loans to help pay for the cost of housing is totally unsustainable. It can quickly lead to debts snowballing out of control and can lead to eviction or repossession and ultimately homelessness.

"Every two minutes someone in Britain faces the nightmare of losing their home. We urge every single one of these people now relying on credit to help pay their rent or mortgage to urgently seek advice."

A survey by the GMB unon has also showed households in the West Midlands were around £2,000 a year worse off in 2011 than they were four years ago.

In Coventry it stands at £3,300 a year while in neighbouring Solihull the figures rises even more to an average of £4,000.

Joe Morgan, West Midlands regional secretary for the GMB said: "The government's strategy for economic recovery is in tatters as living standards in the region drop by 7.6 per cent."