More than 295,000 using credit cards to pay mortgage or rent
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Some 295,000 people have used credit cards to pay their mortgage or rent in the North-West, research from Shelter reveals.
The exclusive YouGov poll for Shelter reveals how people constantly struggling with their housing costs in the North-West are being forced to take drastic measures with credit cards in order to keep a roof over their head.
The survey, conducted in August 2010, of 2202 people in Great Britain asked if respondents had borrowed money on their credit card to pay their rent or mortgage in the last 12 months. Some 5% of respondents in the North-West said yes - a massive increase compared to just 2% in November.
The survey also reveals over two million people are using credit cards in this way across the country, an increase of almost 50% in a year.
The charity is warning that many of these people could be starting the New Year with the threat of homelessness hanging over them.
Vanessa Dixon, North-West regional manager, says: “This research brings into sharp focus how keeping a roof over their head has become a daily struggle for thousands across the North-West.
“This is a totally unsustainable situation and one which we fear could see many more families pushed into the spiral of debt, eviction or repossession and ultimately homelessness.
“Using credit cards to pay the rent or mortgage is simply robbing Peter to pay Paul. With the average credit card interest rate now standing at over 16% it is the worst possible course of action.”
Dixon adds: “Already someone faces the nightmare of losing their home every two minutes, and we would urge every single one of these people now relying on credit to keep their home to seek advice urgently.”
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Readers' comments (1)
Anonymous | 6 Jan 2011 10:52 am
I'd take this this with a large dose of salt.
1. The sample of 2202 is only 0.01% of the over 17 million people with mortgages, so how can it be a reasonable size ?
2. Being generous, all we know is that about 150 people answered a survey and said they had paid towards their mortgage with a credit card.
3. Although this is widely reported, I couldnt find the actual report on the Yougov or Shelter sites,so
- we dont know how these people were chosen
- why they paid by credit card, was it by choice or necessity
- how often they paid by credit card, was it constantly or once a year
4. The 6% who replied saying they had paid the mortgage by credit card is the same percentage as 2007, but this was estimated up to 2 million UK-wide rather than 1 million: why ?
5. If there were 1 million paying by credit card in 2007, why arent they repossessed by now ?
Just a thought before we read anything into this.
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