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2 Million in UK Now Use Their Credit Card to Pay their Mortgage or Rent

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Don't use your credit card to pay mortgage - get advice!UK Charity Shelter housing and homelessness charity issues regular reports which gauge the extent which UK residents are experiencing financial pressures. Their latest press releases issued yesterday show a doubling of the number of people relying on their credit cards to pay their mortgage to 2 Million in UK. That’s almost a doubling in the use of credit finance for this purpose in 12 months.

It also indicates the rising number of families who’s finances must be on a knife edge and perilously close to falling into a spiral of increasing debt, and a rising burden of high interest rate repayments, within the UK population of around 60 million citizens.

The unique YouGov poll conducted for Shelter uncovers how folks are constantly fighting with their housing costs in each of the the regions of the UK. It is clear, they say, that many people are being compelled to take extreme steps with their credit cards, just to keep a roof over their head. They, found this after conducting, in Aug 2010, a survey of citizens in Great Britain in which they asked if respondents had borrowed cash on their credit card to pay their rent or mortgage, in the last twelve months.

The charity is cautioning that many of those folk, using their plastic cards in this way, might be beginning the New Year with the threat of homelessness hanging over them.

Not only can defaulting on credit card payments lead to repossession in very serious cases but only 1 single thing, like a period of sickness, an increase in the cost of their lease, or a drop in their incoming wage, is all that would be wanted to push these guys into a spiral of debt and overdraft, that can ultimately cause the loss of their home.

Campbell Robb, Manager of Shelter has pointed out that research brings into clear focus how keeping a roof over their head has for these people turned into a daily struggle. He describes this as a completely unsustainable situation and one which they fear could see a lot more families pushed into “the spiral of debt, eviction, or repossession and eventually homelessness.

Using credit cards to pay the rent or mortgage is a balancing act which eventually will fail for many, as it raises their interest payment costs, making matters even worse. With the average UK credit card interest rate now standing at over sixteen % it’s the worst possible course of action.

Mr Robb explained that already in the UK somebody faces the horror of losing their home each 2 mins, and they (Shelter)  urge each single one of those folks now counting on credit to keep their home, to find information on lower cost borrowing alternatives without delay.

Shelter themselves also offer information on this from their web site. They recommend that anyone using a credit card in this way should visit shelter.org.uk/debt to get free help today.

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