Brits turn to credit cards to beat crunch
29 October 2007
The homelessness charity Shelter has revealed that over one million people are turning to high-interest credit cards in a bid to cover their mortgage or rent repayments.
Six per cent of all householders currently rely on plastic to pay their landlord or mortgage lender, even despite the interest rate for personal loans rising as much as four per cent over the past month due to the ongoing credit crunch.
Shelter's chief executive Adam Sampson blamed the trend on the five interest rate hikes since last summer as well as the falling affordability of UK property, both of which have added pressure on householders already struggling to fund their housing costs.
"For many people trying to keep a roof over their head, desperation is driving them to short-term, high-cost borrowing," Mr Sampson warned. "Ordinary people are being forced to seek more risky and expensive ways to stave off the threat of eviction and repossession."
