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One Million householders use credit card to pay mortgage.
Wednesday, October 17th, 2007More than a million householders have used credit cards to pay their mortgage or rent in the past 12 months, according to a new survey published by ROOF, Shelter’s housing and homelessness magazine.
The survey, conducted by YouGov for ROOF magazine, polled two thousand households following the Northern Rock crisis. 6% of respondents who pay mortgages or rent said they had relied on a credit card to make payments, equating to a national figure of more than a million householders.
Shelter chief executive Adam Sampson described the results as shocking, and added:
‘The number of people hit by the credit crunch, interest rate hikes and unaffordable housing costs are rapidly rising.’For many people trying to keep a roof over their head, desperation is driving them to short-term, high-cost borrowing. Ordinary people are being forced to seek more risky and expensive ways to stave off the threat of eviction and repossession.’
Most credit card companies charge interest at well above the highest mortgage interest rates.
The situation is worst in the Midlands and Wales with nine per cent - almost one in ten - households in the region using credit cards to keep a roof over their head. Northern England and London were closer to the national average at six per cent whilst Scotland polled at just three per cent.
Shelter’s Adam Sampson continued:
‘Clearly this is a huge problem which will only become more widespread as housing costs continue to rise.
‘We would urge anyone struggling with the cost of their mortgage or rent to seek independent financial advice.’
The root of the problem for many people is that they are paying more than they can afford to service unsecured debts and therefore can’t afford essentials such as mortgage and rent. This results is a vicious circle for which the eventual conclusion is repossession or insolvency.
We urge anyone unable to meet their essential expenses as a result of unaffordable credit repayments to contact us for free advice on how best to manage debt.
For homeowners with unaffordable debts, an IVA or debt management plan can often be the only means to keep their property.
If you recognise yourself anywhere in this article it is ABSOLUTELY VITAL that you take SPECIALIST DEBT ADVICE. Feel free to call me direct on 0161 905 8813.