6% Of HomeOwners Pay Mortgage On Credit Cards
According to reputable housing charity ‘Shelter’ more than 6% of homeowners across the UK – an incredible 1 million households – used their credit cards to help manage and pay off their mortgage payments/rent during 2009.
Primarily consisting of homeowners from lower social classes; Shelter revealed that many middle class families too are now having to use their credit cards to help spread out the cost of their payments, so they could afford to feed and shelter themselves in the current economic conditions.
During their study, Shelter found that in the last year alone the number of lower social groupings who have had to use their credit cards has risen 8%; whereas amongst middle class families this figure had risen by 4%.
With such a growing number of households becoming increasingly dependent on this payment method, Shelter are urging all homeowners who are struggling to keep up with their mortgage payments or rental costs to seek out expert advice before their debt levels become too high. Default on their payments and they could risk losing their homes altogether.
Yet, this is not the worst of it…
Last year, the Citizen’s Advice Bureau reported an increasing number of cases where lenders had gone to court to obtain a charging order so they could recover debt from homeowners – who had fallen into arrears – by forcing them to sell their properties:
Since 2000 there has been a 772% increase in the number of charging order applications being made by unsecured creditors. Whilst in 2007 alone, 74% of the 132,000 applications made resulted in charging orders being made.
Looking at these shocking statistics it is clear that something needs to change soon in order to prevent further repossessions from occurring. Only time will tell if the government will take action to make sure that all lenders use all other avenues available to them first, but seeking repossession.
Related posts:
- Homeowners Clueless About Their Mortgage
- Homeowners Witness 6% Property Cost Drops
- Homeowners should avoid property fraud protection schemes
- Become Mortgage Free Before Your 50
- Figures relating to repossession released by mortgage group
Tags: credit cards, expert advice, mortgage payments, property repossession, selling property
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