Figures produced by a housing charity suggest that up to 6% of households in the OK have borrowed money from their credit card in order to meet their monthly rent or mortgage repayments. According to Shelter’s figures, up to 1,000,000 households in the UK have borrowed high-priced money from a credit card in order to keep up mortgage repayments or meet rent, over the past 12 months, which they claim represents 6% of UK homes. Shelter said that it was more probable to be people in lower social groups who need to stretch their credit card borrowing this way, but the middle classes are also guilty of this. Shelter said it was a "shocking discovery", part of a survey of 2,022 people. "If people are already struggling to the extent that they fear losing their home, increasing credit card debt cannot be the answer," said Kay Boycott, director of policy and campaigns for Shelter. From the limited survey results, the number of people using credit cards in this way affected up to 8% of the lower social groups, whilst it reduced to 4% for middle class groups. The survey has urged people considering this sort of last ditch move to seek properly trained advice. And the reason is quite simple. Borrowing money on a credit card, especially since cash, is an enormously costly way of getting your hands on particular ready cash. Most advisors would be able to locate mortgages which fee lower interest rates than most credit cards on the market, so would certainly recommend moving credit card borrowing to a mortgage, not the other way around. So what should you do if you are struggling to meet your monthly payments? Well, you do not want to miss a payment, that is certain. But you would be seaking professional advice that suits your own circumstances. Approach your lender and explain that you are having difficulties and they should be willing to sort a payment vacation if it is a short term problem. Speaking to an independent advisor should also help, as they should be able to move you to a different mortgage product that is cheaper or might advise spreading out the remaining term of your mortgage.
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Figures produced by a housing charity suggest that up to 6% of households in the OK have borrowed money from their credit card in order to meet their monthly rent or mortgage repayments.
Keith Lunt writes for Compare Mortgage Rates where you can stumble on plenty of indispensable mortgage information.
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