More than two million people have used their credit cards to pay their mortgage or rent, an increase of almost 50 percent in a year, according to new research from housing charity, Shelter.
The exclusive YouGov poll for Shelter reveals how people constantly struggling with their housing costs 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 2,202 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.
In 2009 Shelter commissioned research that showed 3.8 per cent of GB adults had paid their mortgage or rent by credit card in the last 12 months.
Six per cent of respondents said “yes” compared to just four percent in November 2009, suggesting a national figure of over two million people.
The charity is warning that many of these people could be starting the New Year with the threat of homelessness hanging over them.
Not only can defaulting on credit card payments lead to repossession in very severe cases but just one single thing, like a bout of illness, rent increase or drop in income, is all that's needed to push people into spiral of debt and arrears that can lead to the loss of their home.
"This research brings into sharp focus how keeping a roof over their head has become a daily struggle for millions across the country,” said Campbell Robb, chief executive of Shelter.
"This is a totally unsustainable situation and one which we fear could see thousands 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 percent it is the worst possible course of action.
"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.”
Shelter has a network of advice services across the country that are ready to give free advice on debt and housing issues, as well as a comprehensive advice. To find out more, go to: shelter.org.uk/debt
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