Families Now Forced to Use Credit Cards to Pay Monthly Mortgage, Charity Survey Reveals
A recent research carried out by housing charity Shelter has revealed that over a million people have been forced to use a credit card to make their monthly mortgage payments over the past 12 months, and while most of these people were from the working class, plastic has been used by middle class mortgage holders as well.
The charity has now sounded a warning that people who use credit cards to pay mortgages are at an increased risk of losing their homes as credit card firms have to recover their debts sooner or later, and are not bound by the same regulators as mortgage lenders.
"It is absolutely vital that every single person using credit cards in this way seeks advice urgently to get the help they need to ensure they don't lose their home. Shelter has a network of advice services across the country that are ready to give free advice on a range of subjects including debt and housing issues so we would urge anyone struggling to get in touch today. The sooner they seek help, the more options are available", said Kay Boycott, Director of Policy and Campaigns at Shelter.
As per the latest data shared by the Financial Services Authority, the number of mortgage holders who are behind in making their payments has hiked by 16% in 2009's third quarter.