A growing number of people are paying rent or mortgages with money borrowed on a credit card, a charity says. Shelter said that withdrawing cash on a credit card to pay housing costs was the "worst possible course of action" for householders. The poll asked British people if they had borrowed money on their credit card to pay rent or mortgage payments in the past 12 months. Some 6% of respondents said they had done so, which the charity said was a rise on a similar poll a year ago and would equate to more than two million people.
"Using credit cards to pay the rent or mortgage is simply robbing Peter to pay Paul. With the average credit card interest rate now standing at over 16% it is the worst possible course of action," said Campbell Robb, chief executive of Shelter. "Already someone faces the nightmare of losing their home every two minutes, and we would urge every single one of these people now relying on credit to keep their home to seek advice urgently."
Meanwhile, UK banks will be paying out billions of pounds in bonuses this year. And even where bonuses are cut, salaries have risen significantly to compensate, by up to 40% in some cases.
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