How millions are using credit cards to pay mortgages

ILW

Graham_Devon wrote: »

It really isn't a problem.

They could use their credit card to pay their mortgage, and then consolidate the credit card loans into one big loan, secured on the house.

It's actually quite a genius plan.

Are you Carol Vorderman?

ILW

THE_GHOULISH_PROPHECIES wrote: »

If they have a credit card payment vehicle then yes.

Why did you specify families then?

Blacklight

The genius part is hanging on to your home by any means possible when times are hard Graham. People who do this obviously aren't doing it out of choice.

I reiterate, if they manage it by hook or by crook and end up holding their ground until someone finds work or things generally improve in the economy (which they will, in time) then bloody good luck to them.

Losing your job and your home is about the worst thing that can happen to a family. I'm not sure why you're being such it !!!!!! about it.

doire_2

THE_GHOULISH_PROPHECIES wrote: »

Using a credit card to pay a mortgage is simply another payment option families enjoy. Nothing to see hear.

Shut it hamish

chucky

Blacklight wrote: »

Losing your job and your home is about the worst thing that can happen to a family. I'm not sure why you're being such it !!!!!! about it.

he's eaten a lot of lemons and is very bitter

Degenerate

Enough people have already pointed out the flaws in these sorts of surveys, but just to add that the assumptions about the cost of credit card borrowing don't necessarily hold either.

If I needed to borrow a grand or two cash right now, to be paid back in a year, my cheapest option would to to withdraw the cash on my Santander Zero and Halifax Clarity cards then immediately balance transfer to my Barclaycard.

The total cost for this would be 2.9%, which is unbeatable.

nearlynew

THE_GHOULISH_PROPHECIES wrote: »

Using a credit card to pay a mortgage is simply another payment option families enjoy. Nothing to see hear.

Only a complete f*cking moron could post this.


Hope you get banned again soon, by the way.

Aberdeenangarse

The surveys complete bollux. It's a bit like Family Fortunes..........

Name a bird with a long neck? Answer - Naomi Campbell

julieq

OK, sorry to be a party pooper yet again, but let's look at the actual survey results shall we?

"In August 2010 Shelter commissioned further research which showed that 5.6 per cent of GB adults had borrowed on their credit card to help meet their mortgage or rent payments (equivalent to 2.6 million people)." (yougov online poll).

So it's not 25% of mortgage holders (maybe you should edit your post AD?). It's less than 6% of all adults, and the sample size is small. The poll claims to be representative and weighted but there's no way of checking that from the methodology given. I'm sceptical, online polls can't represent those (for example) with no internet connection or those who don't participate in online polls, which could exclude particular groups very effectively, particularly on an age basis. But let's let that pass for the moment.

The qualifying activity is using a credit card once or more to meet accommodation costs. Not mortgages.

There are all sorts of reasons why this is likely to be the case for more people who are renting than mortgages too. For example those with a long standing mortgage will have had pay rises and will have paid relatively little for their home, therefore less likely to hit problems, so actually there is likely to be a smaller proportion of people that would be likely to be involved. Those with low incomes are more likely to be renting than owning. Etc. It's telling that the proportion with mortgages is not given, but it won't even be half.

But the biggest problem is that this is just requiring one payment to be aided with a credit card. The telling statistic would be how many people do it regularly or don't pay off the balance. One cashflow problem does not make a habit. Imagine a situation where someone has £300 left over at the end of a normal month and has to pay £500 for car repairs. To make that payment - or to pay the mortgage or rent - you need credit or else you're dipping into savings. It may make sense to use a credit card, but it's not putting you into financial difficulties. You pay it off the next month. It may seem dumb to many to us a credit card for a cash withdrawal, but many people aren't financially savvy. So what?

So an epic fail once again for the Daily Mail journalists, who seem obsessed with painting a picture of a debt crippled society for whatever reasons they may have. It is, after all, the vilest of vile newspapers. And once again the bears jump all over it without reading or thinking about what has been actually reported, and reach hysterical and wrong conclusions.

Real headline: "Less well off people have difficulty managing money and use high interest credit to make ends meet"

Gorgeous_George

I've never paid my mortgage with my credit card but I would if I could - just for the cashback.

GG