Credit Cards Proping Mortgages in UK

Over the past year, a increasing number of Britains are having to rely on credit cards for financial stability on rent and mortgage payments. Just last year alone a million households had used some form of credit card to keep up with mortgage and rent commitments. Struggling to pay rent or monthly first time buyer mortgage payments is not though, just exclusive to the working classes with 4% of the middle and upper classes admitting to having to put housing payments on plastic at least once.

Although temporary use or credit to not incur late fees at the time for those who are suffering financially is not poor judgement, it does run the rusk of continued reliance on one or more credit cards which would lead to a vicious cycle of growing debt, with long term financial problems and even the loss of property as a result.

Manage of a mortgage investments company, Andy Nutley described the findings as ‘shocking’. The charity recommends that people urgently seek expert advice instead of attempting to deal with the burden of debt alone, especially since many don’t realise just how easy it is to become homeless.

“This is a shocking discovery; over a million households in Britain are in such desperate circumstances that they need to borrow money on credit cards from corporate banks 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,” Mr Nutley explained.