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| Household finances at breaking point, says Shelter | Household finances at breaking point, says Shelter |
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| Rising bills and high housing costs are pushing many household budgets "to breaking point", with one in 11 people worried they will not be able to afford their rent or mortgage this month, according to research from Shelter. | Rising bills and high housing costs are pushing many household budgets "to breaking point", with one in 11 people worried they will not be able to afford their rent or mortgage this month, according to research from Shelter. |
| The housing and homelessness charity said it was currently seeing a "stream of cases" of families who had been unable to cope with mounting rent or mortgage payments, and added that some of them "could face the very real prospect of losing their home this year". | The housing and homelessness charity said it was currently seeing a "stream of cases" of families who had been unable to cope with mounting rent or mortgage payments, and added that some of them "could face the very real prospect of losing their home this year". |
| The warning comes days after a report from the Resolution Foundation thinktank indicated that more than a million homeowners could be at risk of defaulting on their mortgages and losing their properties in the wake of even a small rise in interest rates. Meanwhile, a recent survey carried out by Which? found that rather than paying off their debts, around 13 million people paid for Christmas by borrowing more money. | The warning comes days after a report from the Resolution Foundation thinktank indicated that more than a million homeowners could be at risk of defaulting on their mortgages and losing their properties in the wake of even a small rise in interest rates. Meanwhile, a recent survey carried out by Which? found that rather than paying off their debts, around 13 million people paid for Christmas by borrowing more money. |
| The Shelter research, based on a YouGov survey of more than 4,000 adults, found that 9% of those quizzed feared they would not be able to afford to pay the rent or mortgage at the end of this month. | The Shelter research, based on a YouGov survey of more than 4,000 adults, found that 9% of those quizzed feared they would not be able to afford to pay the rent or mortgage at the end of this month. |
| The charity said families were the worst affected, with more than two-thirds (70%) of rent or mortgage payers with children describing themselves as either "struggling" or "falling behind" with their payments, compared to 63% of the general population of renters and homeowners. | The charity said families were the worst affected, with more than two-thirds (70%) of rent or mortgage payers with children describing themselves as either "struggling" or "falling behind" with their payments, compared to 63% of the general population of renters and homeowners. |
| It added that it had found a worrying trend of people unable to face up to their financial difficulties, with almost one in five (18%) saying they had not opened post if they thought it was a bill or late payment reminder. Almost 15% admitted to putting such post in the bin without opening it. | It added that it had found a worrying trend of people unable to face up to their financial difficulties, with almost one in five (18%) saying they had not opened post if they thought it was a bill or late payment reminder. Almost 15% admitted to putting such post in the bin without opening it. |
| Campbell Robb, chief executive of Shelter, said: "It is a worrying sign of the times that so many of us are starting the new year worried about how they will pay their rent or mortgage in 2014. | Campbell Robb, chief executive of Shelter, said: "It is a worrying sign of the times that so many of us are starting the new year worried about how they will pay their rent or mortgage in 2014. |
| "Despite recent discussion of an economic recovery, we know that a combination of high housing costs, wage freezes and rising food and energy bills has created a nightmare scenario for many families that is pushing them to breaking point." | "Despite recent discussion of an economic recovery, we know that a combination of high housing costs, wage freezes and rising food and energy bills has created a nightmare scenario for many families that is pushing them to breaking point." |
| Liz Clare, a helpline adviser at Shelter, said: "One caller to the helpline arrived home to her rented flat to find the locks had been changed. She hadn't realised that a court hearing had even taken place because she hadn't felt able to open her post after falling into arrears with her rent." | Liz Clare, a helpline adviser at Shelter, said: "One caller to the helpline arrived home to her rented flat to find the locks had been changed. She hadn't realised that a court hearing had even taken place because she hadn't felt able to open her post after falling into arrears with her rent." |
| Caroline Berens, who lives in the Worcester Park area of south-west London with her husband and two children, recently approached the charity for help. She and her husband both work, but are struggling to keep up with the rent and worried about how they will cope in the year ahead. "I go clammy just thinking about the bills. I do anything I can to avoid opening the post as I am scared it will be another overdue bill. We do all we can to make ends meet – we have even sold our wedding rings and my mother-in-law has helped us with the rent – but we are really worried about keeping our home in the coming months." | Caroline Berens, who lives in the Worcester Park area of south-west London with her husband and two children, recently approached the charity for help. She and her husband both work, but are struggling to keep up with the rent and worried about how they will cope in the year ahead. "I go clammy just thinking about the bills. I do anything I can to avoid opening the post as I am scared it will be another overdue bill. We do all we can to make ends meet – we have even sold our wedding rings and my mother-in-law has helped us with the rent – but we are really worried about keeping our home in the coming months." |
| The governor of the Bank of England, Mark Carney, has said he will look at raising the Bank of England base rate when unemployment has fallen to 7%. The figure fell to 7.4% in December, raising expectations that an increase in the base rate will come in 2015, and have an impact on mortgage lenders' rates this year. | The governor of the Bank of England, Mark Carney, has said he will look at raising the Bank of England base rate when unemployment has fallen to 7%. The figure fell to 7.4% in December, raising expectations that an increase in the base rate will come in 2015, and have an impact on mortgage lenders' rates this year. |
| Shelter said rent or mortgage payments should always be the top priority over other bills to prevent people from losing their homes. It is urging anyone worried about their housing costs to get help by visiting shelter.org.uk/advice. | Shelter said rent or mortgage payments should always be the top priority over other bills to prevent people from losing their homes. It is urging anyone worried about their housing costs to get help by visiting shelter.org.uk/advice. |
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