- 01
- Apr
It has been revealed that more than one million people across the UK are using their high-interest credit cards to pay for their mortgages or their rent.
The figure which is roughly six percent of all households shows just how desperate some people are getting to keep a roof over their heads.
The figures which have been release by the charity Shelter show that more and more young people are struggling to remain on the property ladder and have been forced to take desperate measures, including the risk of long-term financial ruin.
The problem with using a credit card to pay for your mortgage is the amount of interest that credit cards charge their customers. Many credit card companies charge rates of between 15% and 18%. Rates like these are as much as three times greater than the rates applicable on the average mortgage. Paying your home loan with your credit card is a very risky and expensive way to avoid repossession or eviction.
The figures show in some areas of the country as many as one in ten people are using their credit card to pay for their mortgage. The people most likely to resort to this measure are in the 18 to 24 year age group. More and more people are finding paying for their mortgage or rent increasingly difficult as the credit crunch hits and unaffordable housing begins to take its toll on the consumer.
Experts are blaming lenders for the problem since the have allowed borrowers to borrow excessive amounts of money, not just on mortgages, but on personal loans, car finance and credit cards.
