Consumers shift housing debt to credit cards

More than one million householders have turned to credit cards to pay their rent or mortgage in the last year.

That is the finding of a study from YouGov, conducted on behalf of Shelter. The results were described by the housing charity as "shocking".

Indeed, it was warned that, as a result of increasing debt problems, a growing number of consumers could be faced with repossessions in the coming 12 months.

On top of this, the survey of over 2,000 people indicated that it is not only low-income households who are suffering.

While the highest proportion of those paying for housing by credit card were from working class professions, the poll also found that as many as four per cent of middle-to-upper class respondents were using plastic in this way.

Over 20 per cent of clients starting Debt Management Plans with Atlantic have mortgage arrears. However, according to Kevin Still, director of the company, "this seems to be the tip of the iceberg".

He warned that "if you are struggling to pay the mortgage and having to use your credit cards then this will lead to a debt spiral".

To avoid this, Atlantic recommend taking debt advice now.

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