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"Credit cards being used by millions to pay mortgage"

By admin | August 18th, 2008 | Credit Cards

According to a recent report there are millions of homeowners in the UK that have been using their credit cards to make mortgage repayments over the past year. Rising living costs and borrowing costs have all been biting on household budgets, and with the country edging towards recession many people do not have the money to keep up with high mortgage repayments, and many are risking losing their homes. As a result millions of people have had to turn to other lines of credit in order to fund their mortgage repayments, and this includes using their credit card to bail them out either on a regular basis or occasionally.

Whilst industry officials have recognised that more people may have to turn to their credit cards on the odd occasion when money has been particularly tight there are concerns over those that may have to rely on their credit cards more heavily or on a more regular basis. Officials have said that using a credit card to make repayments on a mortgage is one of the most expensive ways of making a repayment because of the interest charges and transaction fees that are added.

One charity official recently said: ‘Our report shows just how difficult it is for ordinary people to cope with spiralling housing costs, and how desperately unaffordable housing has become. People are going to extraordinary lengths to ensure they pay their rent or mortgage, but the affects of stress or depression, having to sell possessions or deprive the kids of treats can be devastating to family life.’

The housing minister, Caroline Flint, said that the government were taking action to try and help those facing repossession. She said: ‘We are taking action to support families who may be facing difficulty because of current market conditions, with £9m more for face to face debt advice, and free legal advice to all households at risk of repossession.’

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Tags: Credit Cards, mortgages

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