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Homeowners turning to credit cards

Homeowners turning to credit cards

Category: Credit cards

Updated: 22/01/2010
First Published: 11/01/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
More than one million householders have used credit cards to pay their mortgage or rent in the last 12 months, a new survey has revealed.

According to Shelter, the highest proportion of those who pay their rent or mortgage through credit card are from working class professions (8%).

However, the poll also showed that the middle/upper class are falling victim too, with 4% of respondents saying they use credit cards in this way.

One of the biggest shocks is that one in 12 Londoners are resorting to plastic to pay their mortgage or rent.

The charity has warned that many could find themselves facing homelessness this year because of their huge debts, especially as defaulting on credit card payments could trigger repossession in the worst case scenario.

"This is a shocking discovery, that 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," said Kay Boycott, director of policy and campaigns at the charity.

"If people are already struggling to the extent that they fear losing their home, increasing credit card debt cannot be the answer.

"It is absolutely vital that every single person using credit cards in this way seeks advice urgently to get the help they need, to ensure they don't lose their home."

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