Lib Dems slam government for credit card council rent

13/01/2009

Some social tenants are risking becoming locked in to a debt spiral - by paying their rent with their credit card.

According to a new study from the Liberal Democrats, 3,300 people are using this risky repayment method in England each month.

The problem was also shown to exist in Wales, where councils have taken £1.6 million in rent from the cards over the past five years.

Sarah Teather, Lib Dem housing spokesperson, suggested that the government should take some blame for the situation.

"The government has given a green light to housing associations, government agencies and councils encouraging vulnerable families to pay off debts with costly credit cards," she said.

"While offering a range of payment methods increases choice for tenants, public bodies should be wary of actively encouraging credit card payments."

Chris Tapp at financial charity Credit Action also said that landlords for people in social housing should help their tenants to use other payment methods, rather than credit cards.

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

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