Free yourself from debt today.

DEBT HELP NOW
In 5 Minutes Or Less

Are You Using Credit Cards To Pay Your Mortgage?

During the last 12 months, 6% of debtors struggling to pay their rent or mortgage have turned to the plastic to cover shortfalls on their monthly re-payments.

Housing charity Shelter has found that financially stretched borrowers are using credit cards to ensure that payments are made to their priority creditors. Worse still, 7.5% of young people between 18 – 24 years old, desperate to keep their feet on the housing ladder, are getting themselves deeper into debt as a result.

Shelter has a right to be concerned:

The Council of Mortgage Lenders (CML) recently announced a 30% rise in house re-possessions for the first 6 months of this year, compared to the same period in 2006.

Bank of England interest rates have risen 5 times during the last 12 months from 4.75% – 5.75%. This has hit many home-owners hard with rapidly increasing mortgage re-payments that have now become unmanageable.

On top of this, concerns that US sub-prime lenders (specialising in mortgages and secured loans for people with poor credit histories) have been irresponsibly lending too much to those who cannot afford to pay has lead to a credit crunch in the UK.

Lenders have responded by restricting their lending on mortgages and unsecured credit. Barclays recently cut the credit limits of over 500,000 card-holders who were over their card limits or who were financially stretched.

Home-owners coming out of 2 or 3 year fixed rate mortgages face mortgage shock, where they are unable to find comparable deals and therefore can expect stiff increases in their monthly mortgage re-payments.

If any of these issues are affecting you, then you should seek advice straight away from a non fee-charging free debt advice company such as Payplan.

You can call Payplan free on 0800 280 2816

Written by on October 19th, 2007

Filed Under  Debt News   |  Trackback  |   Leave a Comment

Leave a Comment