(UK) 1million households use credit card to cover mortgages or rent

[Robbien]

Source: Financial Times

Tenant defaults could soar over the next year following new figures which found up to one million households have borrowed money on a credit card to pay their mortgage or rent over the past year.

According to a YouGov poll for housing charity Shelter, 8 per cent of people in working class jobs pay their rent or mortgage through credit card compared to 4 per cent of middle to upper-class people.

As much as 12 per cent of people in London use credit cards to pay their rent or mortgage.

Graham Kinnear, managing director of Landlord Assist, a tenant eviction and rent collection firm, said it was acting for a number of landlords where their tenants are considering bankruptcy as they have paid their rent with credit cards but now cannot maintain their finance payments.

Read more: http://www.ft.com/cms/s/2/9dae36c6-febe-11de-91d7-00144feab49a.html

[Fearless]

1. Writing on the wall... sigh... n/t

[Skink]

2. It will make the bankruptcy that much sweeter.

[Robbien]

3. Not really

In the US the primary residence is protected in a bankruptcy. The article states that in the UK if a person used a credit card to finance their mortgage the credit card company can go after the primary residence.

[Skink]

4. That stings.