Households paying mortgages with credit cards

macaque_2

kennyboy66 wrote: »

Conveniently ignoring the fact that the report say mortgages or rent.

I wonder why that is ?
The most likely group to have to use their credit card in this way is the 18-24 age group.

Perhaps they all bought a house very young.

You spotted the wastepaper basket in the corner but ignored the elephant in the room.

What I said was:

'approximately' million people are in properties they cannot afford

This statement is correct and equally serious for the property market whether it refers to rental or purchase.

I am always confounded by the capacity of bulls to ignore the link between rent and house prices. This habit of self deception is very dangerous and lies at the root of the famous BTL saying 'I'm in it for the long term'.

Mr.Brown_4

macaque wrote: »

famous BTL saying 'I'm in it for the long term'.

They are now!!! :eek:

Really2

I think the PPR'd may fall on the one doing the reporting this time.

chucky

Really2 wrote: »

I think the PPR'd may fall on the one doing the reporting this time.

it's pretty obvious who it is - it's the same poster that got PPR'd the last time for abusing and sending abusive PM's to other forum members.


Nutrisse
Last Activity: Today 3:09 PM

Mr.Brown
Last Activity: Today 3:10 PM


quick i better log on using my other User Id to post after i've reported using Nutrisse

and this from a guy who doesn't care. tut tut

[Deleted User]

macaque wrote: »

You spotted the wastepaper basket in the corner but ignored the elephant in the room.

What I said was:

This statement is correct and equally serious for the property market whether it refers to rental or purchase.

I am always confounded by the capacity of bulls to ignore the link between rent and house prices. This habit of self deception is very dangerous and lies at the root of the famous BTL saying 'I'm in it for the long term'.

Actually, what you said was:

If 1m people are using credit cards to pay mortgages, then

They aren't. So everything that followed in your post was based on a false premise.

Take away that false premise and your post has an entirely different meaning. But still I don't know that what you say necessarily follows. The fact that 'up to one million' people have at some time used their credit card to pay for rent or mortgage payments does not mean they can't afford to live in their homes. For example, some might have paid their rent (or mortgage) by credit card one month because they spent their wages/savings on christmas presents. Or maybe they were out of work for a short spell but now they've got things back under control.

I think it's pretty obvious that during a world recession a lot of people will be living in homes they can't afford (rent or mortgage). But that article doesn't really shed any light on the extent of the problem.

Mr.Brown_4

chucky wrote: »

it's pretty obvious who it is - it's the same poster that got PPR'd the last time for abusing and sending abusive PM's to other forum members. tut tut

:rotfl:You worked it out from 3 posts :rotfl:

Surely you need at least eighteen months of stats and graphs before you can draw any meaningful conclusion.

Chill out Chucky my friend. Don't worry about all the data so much, it can get you down, too long looking at this stuff.

Emy1501

StevieJ wrote: »

You are almost certainly correct, the last line in the BBC article says

'The charity also found that 74% of the 132,000 applications in 2007 resulted in charging orders being made.'

So it is mortgage or rent and was carried out over two years ago :rolleyes:

To be fair Shelter say it was carried out recently.

http://england.shelter.org.uk/news/january_2010/1m_paying_for_homes_by_creditcard

Its a you gov poll of 2000 people in 2009. If 70% own then its likely that 700,000 have paid their mortgage by credit cards. Why they paid it and how often is the question that people relaly need to know.

Why people are simply dismissing the survey is beyond me

chucky

Mr.Brown wrote: »

You worked it out from 3 posts

give it a rest sunshine - is everything ok in your personal life today.
you seem to be going out of your way to stalk me more than normal.
seriously though you've got to be very sick to go out of your way to follow a stranger on the internet around on a forum. there must be a number of things missing in your life...

it's pretty easy to work out who it is. just look at the profile to see how you log in and out of the forum.
it's not the first today either.

chucky wrote: »

it's pretty obvious who it is - it's the same poster that got PPR'd the last time for abusing and sending abusive PM's to other forum members.

Nutrisse
Last Activity: Today 3:09 PM

Mr.Brown
Last Activity: Today 3:10 PM

quick i better log on using my other User Id to post after i've reported using Nutrisse

but you don't care so you've no need to respond - or do you??

chucky

and what a surprise

Mr.Brown
Last Activity: Today 3:33 PM

Nutrisse
Last Activity: Today 3:34 PM

why do people feel the need to set up an additional user id to stalk other posters. it's very sad and even pathetic that that they need to do these things just to try and make a point because they've been proved wrong.

[Deleted User]

Emy1501 wrote: »

Its a you gov poll of 2000 people in 2009. If 70% own then its likely that 700,000 have paid their mortgage by credit cards. Why they paid it and how often is the question that people relaly need to know.

Why people are simply dismissing the survey is beyond me

I don't know that this follows.

Assuming it's the case that there is a direct link between house prices and rents, then you might assume that renters and mortgage payers will have similar levels of difficulty in paying.

I may be wrong, but my feeling is that generally speaking (and of course it's not always the case) those that rent are typically less well off than those that buy. Which might lead you to believe that renters are more likely to run into trouble than buyers.

Another factor is that due to inflation and wage increases the home owner typically only struggles with mortgage payments for a short while. Also, the home owner eventually pays off the mortgage and has no need to make further payments. The renter must pay rent for life and rent keeps going up as house prices increase. They don't get the benefit of 'locking in' at a certain level the way house buyers do. So whereas mortgage payers might struggle for a short period in their lives a rent payer is likely to struggle all of their life.

My guess would be that a much higher percentage of renters (than mortgage payers) would run into trouble. But it's so open to interpretation that you could read anything you like into it.

I suspect the reason why lots of people are dismissing the survey is that it really doesn't tell you anything of value. We already know that in a recession lots of people will struggle.