Credit cards used to wade through debt

Mon, 22 Oct 2007

Many UK consumers are utilising their credit cards to pay off mortgage loans and rent, due to tightened lending criteria, increasing interest rates, and the credit crunch affecting financial services markets.

The expensive cost of housing, combined with interest rate hikes, have left many people trying to wade through their debt with their credit cards, not regarded as a sustainable way to solve financial trouble.

The concerns were voiced by the home charity Shelter. They found that many first-time buyers are using expensive methods of credit to keep their position on the property ladder intact.

The chief executive of Shelter, Adam Sampson, reportedly commented: "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 ."
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