'One million' pay mortgages with credit cards

Date:Tuesday 12th January 2010
Author: Max Freedman

As many as one million people are paying off their mortgages or rent using a credit card, it has been reported.

The survey, carried out by the homeless charity Shelter, uncovered the worrying statistic that six per cent of the UK population have used their plastic to pay for part for their debt in the last year.

It is a worrying statistic for the charity as it means that people who cannot keep up with their credit card repayments risk losing their homes to pay off the debt.

Statistically, it is London residents who are most likely to resort to credit cards, with one in 12 admitting that they had paid off part of their mortgage debt by getting further into credit.

Kay Boycott, director of policy and campaigns at Shelter, said: "If people are already struggling to the extent that they fear losing their home, increasing credit card debt cannot be the answer."

For anyone who is having problems paying off their debt, switching to another mortgage with a lower rate could be an option, according to moneynet.co.uk.