Credit card mortgage payment figures "terrifying"

Date:Thursday 14th January 2010
Author: Susanna Kavka

The co-owner of the Homeowners Advice Centre has suggested new figures showing the number of people using credit cards to make mortgage payments are very worrying.

Chris Jenkins said the Shelter statistics, which revealed one million people have paid their mortgage lenders or landlords in this way during the last year, are "frankly terrifying" and warned of the impact it can have on debt levels in the long term.

"Payments build up and credit inevitably runs out leaving the individual in a much worse position, having run up large debts without getting to the root cause of the problem of monthly outgoings exceeding incomings," he remarked.

Shelter found that more than one in 20 people in the UK used credit cars for mortgage or rent purposes, with the proportion increasing to one in 12 in London.

Mr Jenkins stated that under some circumstances making such payments on plastic can be acceptable, but if it is happening regularly, then it is a clear sign that underlying financial problems exist.