Many make mortgage repayments on their credit cards

The global credit crunch and subsequent lack of finance options that has come about as a result of the credit squeeze has left many consumers relying more and more heavily on their credit cards to cover all sorts of financial emergencies, and this includes covering mortgage repayments, as well as paying bills and even funding emergency repairs in the home with their credit cards.

A study was recently undertaken by the homeless charity Shelter, and the figures show that around four million homeowners have used their credit cards at least once in the past year to keep on top of their mortgage repayment. Officials say that this is a very expensive means of making repayments, and could lead to unmanageable levels of credit card debt.

One official from the charity said: ‘Our report shows just how difficult it is for ordinary people to cope with spiralling housing costs, and how desperately unaffordable housing has become. People are going to extraordinary lengths to ensure they pay their rent or mortgage, but the affects of stress or depression, having to sell possessions or deprive the kids of treats can be devastating to family life.’

Caroline Flint, the housing minister, said that the government was looking to offer support to those at risk of spiralling debt problems. She said: ‘We are taking action to support families who may be facing difficulty because of current market conditions, with £9m more for face to face debt advice, and free legal advice to all households at risk of repossession.’