More Than One Million in UK Use Credit Card to Pay Mortgage or Rent

January 11, 2010 No Comments »

credit cards

I took a shot at the United States in my previous post when comparing our housing policy to that of China’s, but we may not be the worst, at least in some terms.

In the United Kingdom, more than one million “householders” have used credit cards to pay their mortgage or rent in the past year, according to a new survey from homeless charity Shelter.

Overall, six percent of respondents said they used their credit cards to pay the mortgage or rent, representing over a million households in the UK.

The highest proportion using credit cards to pay the mortgage was the working class, at an eight percent clip; four percent of middle/upper class respondents said they did the same.

In London, one in 12 have turned to plastic to pay their monthly mortgage or rent.

“This is a shocking discovery, that over a million households in Britain are in such desperate circumstances that they need to borrow money on credit cards to pay for basic housing costs,” said Kay Boycott, Shelter’s director of policy and campaigns, in a release.

“If people are already struggling to the extent that they fear losing their home, increasing credit card debt cannot be the answer.”

Paying the mortgage with a credit card doesn’t make a whole lot of sense, considering interest rates tied to credit cards are often well into the double-digits.

Such services typically also require a one-time fee, making the decision all the more troublesome.

Interestingly, CardIt, LLC., a US-based company that allowed homeowners to make mortgage payments via credit card launched just two years, now seems to be defunct.

Not much of a surprise.

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