Some homeowners are turning to pay day loans to help pay their mortgage, it has been claimed.

Writing in the Hattiesburg American, Julie McAdoo, from the Consumer Credit Counseling Service of Greater New Orleans, said borrowers are taking out short term loans or dipping into their retirement funds.

A recent NFCC-MSN Money Financial Literacy Survey revealed that one in ten Americans with a mortgage report being late or missing a mortgage payment in the previous 12 months.

Finance expert Tom Collens told Ms McAdoo: "If making the mortgage payment is a struggle month after month, if it is going to present a hardship to the family, then other options should be considered."

Earlier this week, it was reported by the BBC that many Americans are walking away from their mortgages and allowing the banks to foreclose on their homes.

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