Debt management news: Credit card mortgages "frankly terrifying"

14/01/2010

Homeowners risk increasing debt problems when credit cards are regularly used for mortgage payments, a housing expert has suggested.

Chris Jenkins, co-owner of the Homeowners Advice Centre said that the number of people using credit cards to pay mortgages was "frankly terrifying".

Mr Jenkins said: "This short-term solution does not address the fundamental problems of monthly outgoings exceeding incomings leading to an inability to afford vital monthly bills."

The advisor warned that "if rent and mortgage payments are being regularly made on a card and not being paid off then there is clearly an underlying financial problem" and urged consumers to look at their income in relation to their outgoings.

He added that occasional payments on credit cards were acceptable "as long as money is expected in to repay the credit card bill".

Figures releases on January 11th by the charity Shelter, showed that more than one million homeowners had used a credit card for a mortgage or rent payment in the last 12 months.

Tags; Housing Debt and Bills,

• Share
• 
• 
• Store
• 
• Follow
•