In a desperate effort to pay off their mortgages, at least two million people are making payments using their credit cards as they are struggling with their home loans, as per the homeless charity shelter. The number of homeowners as well as tenants who are resorting to paying with their credit cards to retain their homes, has risen by nearly 50% since November 2009. A poll conducted by YouGov has interviewed 2,234 individuals in Britain, 6% had admitted using their cards to pay off mortgage loans compared to 4% in 2009, which suggests a national figure of around 2 million people.
With rising interest rates and unemployment, coupled with the hike in VAT and the inflation, the charity warns that these families have started the year with the likelihood of losing their homes as they run the risk of exhausting the little expensive credit that is available to them.
Campbell Robb, Chief Executive, has stated that their research has brought out these figures into focus where there are millions in the nation who face the daily struggle to keep their homes.
This situation is not going to be sustainable in the long run as there would be a few more thousands of families that might be pushed into spiraling debt, eviction, and repossession, which would ultimately make them homeless.
It is important that each and every person should take some responsibility and try to get out of debt. Its is also advised to get some useful advice from organizations such as Shelter in order to ensure that they don`t lose their homes.
While a spokesperson at Council of Mortgage Lenders (CML) states that a majority of these people were most likely the tenants and not home owners as the payments of home owners was usually through direct debit. As per the CML reports last year only a small percentage of people resorted to paying by card.
Shelter has urged people with mortgage loans to seek help from the non-profit advisors who give their advice based on what is best for you as their motive is not to make profit. Paying off debt and creating another is not the solution.