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Personal Finance News – Credit Cards Used By Two Million Brits For Rent Or Mortgage Payments

by Jim ONeil on January 8, 2011

in Personal Finance News

The charity Shelter recently conducted a survey that found that two million people in Britain have used a credit card to make a mortgage or rent payment. This figure represents an astounding 50 percent increase from that of just one year ago. It clearly shows how many households must go to the extreme to stay in their homes as the cost of living increases.

Shelter predicted that many of these folks may begin 2011 facing potential homelessness. In extreme cases, credit card payment default can lead to asset repossession. Some people can lose their home if an issue like a reduction in income or increase in rent pushes them into debt and they are unable to recover.

The severity of the situation was stressed by Shelter Chief Executive Campbell Robb, who said that millions throughout the country struggle on a daily basis to keep the roof over their heads. He believes that this situation cannot sustain itself. Thousands of families could eventually face homelessness if nothing is done. He reported that someone in the country faces the prospect of losing his or her home every two minutes.

Making mortgage or rent payments via credit cards, many of which have interest rates over 16 percent, is the worst thing a person can do, said Mr. Robb. It is exchanging one bad situation for another. Anyone who has come to rely on credit to keep a home should immediately seek professional assistance.

The results of the Shelter survey are very sobering but not all agree with them. The Council of Mortgage Lenders conducted separate research and found that only two percent of Brits have used a credit card to pay their mortgage. A CML spokesperson stated that the majority of the cases reported by Shelter were likely related to renters, not homeowners.

mar

Hardly *L*…. Its a very biased liberal news source!!

whimsy

The bailouts and stimulus are part of the agenda to destroy our economy and embrace global socialism via the new world order and the North American Union. Another part of the agenda is amnesty, outsourcing, "gun control", and big government represented by global corporations and the UN.
AN EU style trading block and poverty will be the result.

Furriner

So you can have a million in the bank and a million in debt, and in the U.K. you can inherit the million and not the debt? Somehow I doubt that.

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