Homeowners turning to plastic to meet repayments
Published On 17 October 2007
Approximately one million householders are using a credit card to pay for their mortgage or rent, a new survey from housing charity Shelter has revealed.As people find it more difficult to stay on the housing ladder, the research showed that 7.5 per cent of young people aged between 18 and 24, first-time buyers in particular, have turned to credit cards in the last year to pay for their accommodation.
Adam Sampson, chief executive of Shelter, said he was shocked by the results, adding: "The number of people hit by the credit crunch, interest rate hikes and unaffordable housing costs are rapidly rising.
"For many people trying to keep a roof over their head desperation is driving them to short-term, high-cost borrowing. Ordinary people are being forced to seek more risky and expensive ways to stave off the threat of eviction and repossession."
According to new statistics from moneysupermarket.com, the number of first time buyers successfully making it onto the property ladder has dwindled by 20 per cent in the last six months.
