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6% of UK homes use credit cards for mortgage repayments

Published: 12/01/2010 by Comments

Many Brits are relying on credit cards in order to make regular rent and mortgage payments, it has been revealed. Last year over a million households used credit cards to keep up with mortgage and rent commitments, according to new figures released by homeless charity Shelter. Struggling to pay rent or monthly mortgage payments isn’t exclusive to the working classes either the new survey discovered, with 4% of the middle and upper classes admitting to having to put housing payments on plastic at least once.

It may seem like a smart move at the time for those who are suffering financially, but a continued reliance on one or more credit cards in this way can lead to a vicious cycle of growing debt, with long term financial problems and even the loss of property as a result. Manage of Shelter, Lincolnshire, Andy Nutley described the findings as ‘shocking’. The charity recommends that people urgently seek expert advice instead of attempting to deal with the burden of debt alone, especially since many don’t realise just how easy it is to become homeless.

“This is a shocking discovery; over a million households in Britain are in such desperate circumstances that they need to borrow money on credit cards to pay for basic housing costs. If people are already struggling to the extent that they fear losing their home, increasing credit card debt cannot be the answer,” Mr Nutley explained.

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