IVA News

The Housing Charity Shelter published a survey yesterday that claimed that more than 1 million householders have used credit cards to pay their mortgage or rent in the last 12 months.

Shelteer say that 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 falling victim, with 4% of respondents saying they use credit cards in this way.

The Charity claims that many could find themselves facing homelessness this year because of their huge debts, especially as defaulting on credit card payments could trigger repossession in the worst case scenario.

The survey asked if respondents had paid their rent or mortgage by credit card in the past 12 months. 6% of those who were liable for the rent or mortgage said yes – suggesting a national figure of more than a million people.
Kay Boycott, Shelter's director of policy and campaigns 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.'

Nick Pearson from debt solutions experts Baines and Ernst commented “Anyone using credit cards to pay their mortgage or rent should seek advice urgently to get the help they need to ensure they don’t lose their home”