Member Article

Millions ‘use credit card for mortgage’

More than one million householders have used credit cards to pay their mortgage or rent in the last 12 months, a new survey by Shelter has revealed.

The highest proportion of those who pay their rent or mortgage through credit card were from working class professions (8% of those in the C2DE social grouping), but the poll also showed that middle/upper class (ABC1 category) are also falling victim, with 4% of respondents saying they use credit cards in this way.

The figures come from a YouGov poll carried out for the charity’s ROOF magazine.

The charity is issuing a stark warning to people about the dangers of using credit cards which could result in the loss of their home. Credit card companies have to recover their debts and are not subject to the same rules as mortgage lenders. Once they obtain a charging order on people’s property, credit card companies can go back to the court for a possession order to force a sale to recover the debt.

Kay Boycott, director of policy and campaigns at Shelter said: “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.

“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.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .