How millions are using credit cards to pay mortgages

AD9898_2

Interesting paradox that the media cheer high house prices when this sort of thing is happening.

2.6 million people use credit cards to pay their mortgage, this despite millions of dual income families and 0.5% base rate.




http://www.dailymail.co.uk/news/article-1344525/Millions-using-credit-cards-pay-mortgages.html


Just to edit, the way I read this is that nearly 25% of all mortgage holders (approx 11 million), paid at least 1 payment of rent or mortgage on a credit card last year, pretty staggering.

Really2

Around 2.6million Britons used cash taken out on a credit card to pay their mortgage or rent last year.

You missed rent out.

One obvious point *(and one I think I used the same time last year:)) I thought you could not use a credit card to pay a mortgage??
So they are saying taking out cash, I would say shelter have an interest in making the sample worse than reality for renters and owners.

Odd how it is always put down as mortgage holders though?

AD9898_2

Really2 wrote: »

You missed rent out.

One obvious point *(and one I think I used the same time last year:)) I thought you could not use a credit card to pay a mortgage??

Yes I meant to add rent. As far as paying your mortgage by card, you may not be able to, but you can draw cash from them and transfer to your current account. Have to be pretty desperate to do this because of charges though.

chucky

AD9898 wrote: »

Interesting paradox that the media cheer high house prices when this sort of thing is happening.

2.6 million people use credit cards to pay their mortgage, this despite millions of dual income families and 0.5% base rate.




http://www.dailymail.co.uk/news/article-1344525/Millions-using-credit-cards-pay-mortgages.html


Just to edit, the way I read this is that nearly 25% of all mortgage holders (approx 11 million), paid at least 1 payment of rent or mortgage on a credit card last year, pretty staggering.

welcome back sir, i miss your threads.

Really2

AD9898 wrote: »

Yes I meant to add rent. As far as paying your mortgage by card, you may not be able to, but you can draw cash from them and transfer to your current account. Have to be pretty desperate to do this because of charges though.

Don't forget shelter do the same every year, you would argue renters were stretch more last year than mortgage holders, with rents increasing and mortgages staying static.

they estimated 1m last year
http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/6963275/A-million-use-credit-card-to-pay-mortgage.html
but don't forget they have an interest of painting a bad picture due to how they are supported.

here is the full report
http://media.shelter.org.uk/Press-releases/TWO-MILLION-PEOPLE-USE-CREDIT-CARDS-TO-PAY-MORTGAGE-OR-RENT-SHELTER-REVEALS-373.aspx

The survey, conducted in August 2010 of 2234 people in Great Britain asked if respondents had borrowed money on their credit card to pay their rent or mortgage in the last 12 months. Six percent of respondents said yes compared to just four percent in November 2009, suggesting a national figure of over two million people.

TBF from 4% -6% on that sample is just 40 people more, it's a fairly small sample to be representative of the whole of the UK and can be swung wildly by how, where and when they do the survey.

AD9898_2

chucky wrote: »

welcome back sir, i miss your threads.

There has been a reason for me not posting threads and links, won't go into it here though.

Batchy

In desperate times people do desperate things!

I wouldnt have thought this would last long as without the cash to pay the mortgage, its obvious cash will be strained to pay credit cards too!

Loughton_Monkey

First of all, I think we are primarily in the 'rent' market here, rather than mortgages.

But look at it logically, and look at what message Shelter want to put out - and how amateur and cheap they would be in research. Here's the rub.

Do you struggle to pay your Grocery bill, fares, rent, car expenses, gas bills, electricity bills.......?

YES

Do you find yourself running out of cash and so get a cash advance through your credit card?

YES

Ergo... put this person down as someone who uses credit card to pay for mortgage or rent.

Blacklight

So what if they do? They're the ones who will ultimately end up owning their own home and not having to go out to work if they don't feel like it later in life.

People can scoff from their over priced rentals while their savings dwindle in value and they have to work until 75 if they like but it's always those that apply themselves and use whatever means they can to achieve their goal that end up on top.

Good luck to them. I hope it works out and they get to rest easy very soon.

AD9898_2

Batchy wrote: »

In desperate times people do desperate things!

I wouldnt have thought this would last long as without the cash to pay the mortgage, its obvious cash will be strained to pay credit cards too!

You'd be surprised, I personally know one person who as been juggling cards and payments for literally years, they are close to hitting the wall though now, but it's taken much longer than you might think, even with a shortfall in income of £200 per week for the last 2 years.

Sibley

It's no worse choosing to pay your mortgage with a CC than going on holiday with one.

As long as you pay it back so what?

People have the means to get cedit and can use the money how they want.

If it all goes wrong just go bankrupt. The bears savings will bale you out no problem.:rotfl: