Britons using credit cards for mortgage payments

By Julie Sherrier

Britons using credit cards to pay mortgagesMore than 1 million Britons are currently relying on their credit cards to make rent or mortgage repayments every month, according to new research released January 11th.

Shelter commissioned a YouGov poll of 2,022 people and found that 6% used this strategy in the past 12 months, with both working- and middle-class homes featuring prominently in the total.

Kay Boycott, director of policy and campaigns at the housing charity, explained that the development is worrying as it greatly increases the possibility of homes being repossessed.

She said: "This is a shocking discovery, that over 1m 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."

Ms Boycott added that credit card companies can go to court to force the sale of a property if they issue a charging order for unpaid debts relating to its mortgage.

The news comes after Shelter claimed last week that an increasing number of UK households are spending less on fuel in order to meet their housing costs.ADNFCR-2308-ID-19549784-ADNFCR Save

Published: 13 January 2010