Jonathan Edwards MP announced the worrying results of the joint research at the National Eisteddfod in Denbigh.
The research, carried out by YouGov, asked how people were coping with rent and mortgage payments, how secure they felt financially compared to last year, how long they would be able to afford to pay their rent or mortgage if they lost their job and whether they had taken out one or more payday loans in the last year.
Shockingly, nearly half (48%) of Welsh adults who paid rent or a mortgage said they struggle or fall behind at least some of the time to keep up with their payments, with 12 per cent saying that they struggle constantly.
For those who are currently in employment, when asked about how they would manage if they lost their job, one in six mortgage or rent payers in Wales would not be able to keep up with payments because they do not have a financial safety net, such as insurance, or savings.
John Puzey, Director of Shelter Cymru, said: “These figures paint a very worrying picture. It’s clear that many people are only just holding things together financially – just one piece of bad luck such as losing their job or being unable to work could be enough to tip them over the edge into serious difficulties.
“It’s bad enough that nearly half the people surveyed who paid rent or a mortgage said that they were struggling at least some of the time, but we also need to consider that many people are on interest-only mortgages and that interest levels are still relatively low. If this changes or people’s mortgage deals come to an end, then this situation could escalate significantly.”
Mr Puzey pointed to the widespread benefit changes as a likely reason why tenants in council and social housing are particularly affected - 11 per cent of council and housing association tenants said that they had taken out more than one payday loan in the last year to help meet living expenses, compared to two per cent of the population overall.
“It seems fair to assume that the higher level of financial difficulties and insecurity reported by council and social housing tenants are a direct result of the sweeping changes to benefits, in particular cuts to housing benefit and the introduction of the bedroom tax,” he said.
Fran Targett, Director Citizens Advice Cymru said: “The number of people turning to payday lenders to meet everyday living expenses is thankfully relatively low, but we are concerned that this is just a small part of the picture.
“Our bureaux in Wales have seen a 555 per cent increase in issues linked to payday loans in the first quarter of 2013 compared with the same quarter of the previous year, and this is something that is very worrying as it will only increase with the changes to the benefit system.
“Together with the dramatic increase in the use of foodbanks as reported recently by the Trussell Trust, this gives a very clear impression of a lot of people who are running out of options to keep their heads above water.”
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