More borrowers using credit cards to pay their mortgage or rent

by Aaron Strutt

Jan 08 2011

More than 295,000 people have used credit cards to pay mortgage or rent in the North West, according to figures released by the housing charity Shelter.

The survey, conducted in August 2010, of 2202 people in Great Britain asked if respondents had borrowed money on their credit card to pay their rent or mortgage in the last 12 months. Five percent of respondents in the North-West said yes - an increase compared to just two percent in November.  The survey also reveals that over two million people are using credit cards in this way across the country, an increase of almost 50 percent in a year.

Mortgage lenders generally do not accept credit cards as a way of paying for a mortgage, but many credit card companies will advance cash. Vanessa Dixon, Shelter North West Regional Manager said: “Using a credit card to pay the rent or mortgage us simply robbing Peter to pay Paul. With the average credit card interest rate now standing at over 16 percent it is the worst possible course of action.”

January 8, 2011