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More than 4m families use a credit card to pay mortgages

Lotus-eater
Lotus-eater Posts: 10,789 Forumite
10,000 Posts Combo Breaker
in Debate House Prices & the Economy
The daily Mail

http://www.dailymail.co.uk/news/article-1027566/More-4m-families-use-credit-card-pay-mortgages.html

Around 400,000 families said they have fallen behind with mortgage or rent payments.
About 2.2million households spend more than half of their income on their housing costs.

I did think that a couple of interest rate rises would make this worse, but the banks seem to be doing it themselves, with no help from the BOE.
Does anyone still honestly think its not going to get worse? Apart from my FIL, who still says its only a blip :rolleyes:
Freedom is not worth having if it does not include the freedom to make mistakes.
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Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    A blip? Isn't that like describing WW2 as a scuffle?
  • Lotus-eater
    Lotus-eater Posts: 10,789 Forumite
    10,000 Posts Combo Breaker
    No, he reads the Express and must only look at the bits he likes.
    Freedom is not worth having if it does not include the freedom to make mistakes.
  • dannyboycey
    dannyboycey Posts: 1,060 Forumite
    Lotus-eater wrote: »
    No, he reads the Express and must only look at the bits he likes.


    Am I the only one who thinks that Daily Express readers should be denied the right to vote?
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    Lotus-eater wrote: »
    The daily Mail

    http://www.dailymail.co.uk/news/article-1027566/More-4m-families-use-credit-card-pay-mortgages.html

    Around 400,000 families said they have fallen behind with mortgage or rent payments.
    About 2.2million households spend more than half of their income on their housing costs.

    I did think that a couple of interest rate rises would make this worse, but the banks seem to be doing it themselves, with no help from the BOE.
    Does anyone still honestly think its not going to get worse? Apart from my FIL, who still says its only a blip :rolleyes:

    If the stats are true then it's a pretty worrying indicator of how bad things are going to get.

    It's also quite a shocking indictment of people's financial abilities. Funding something like mortgage payments with a credit card is fiscal madness of the highest order.

    Then again, we had the spectacle of people raising deposits with credit cards when the boom was on.....
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • mr.broderick
    mr.broderick Posts: 3,778 Forumite
    1,000 Posts Combo Breaker
    !!!!!!? wrote: »
    If the stats are true then it's a pretty worrying indicator of how bad things are going to get.

    It's also quite a shocking indictment of people's financial abilities. Funding something like mortgage payments with a credit card is fiscal madness of the highest order.

    Then again, we had the spectacle of people raising deposits with credit cards when the boom was on.....

    Didn't realise you could pay credit off with credit.
  • oldMcDonald
    oldMcDonald Posts: 1,945 Forumite
    mr.broderick wrote: »
    Didn't realise you could pay credit off with credit.

    In the 80's I knew someone who would pay ACCESS off with VISA at the start of the month and VISA off with ACCESS at the end of the month, upping his limit when he got close to it. Needless to say, he ended up in a awful mess financially!

    We pay our rent and council tax each month with our VISA, but we do it so we get cashback on something we have to pay out on. We do make sure we pay it off in full each month, though, so as to avoid any interest charges.
  • Lotus-eater
    Lotus-eater Posts: 10,789 Forumite
    10,000 Posts Combo Breaker
    mr.broderick wrote: »
    Didn't realise you could pay credit off with credit.
    You are not supposed to be able to use a CC for a deposit, but there have been several threads on here where people have come up with various schemes to get a deposit together, several involving CC's, short term loans from family and other mad ideas.

    Its actually the (apparent) fact that so many households pay half their income in housing costs that shocks me, there will always be those that fall behind with payments. But that many, so close to the obvious limit, it doesn't take much to push them over.
    Freedom is not worth having if it does not include the freedom to make mistakes.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    oldMcDonald wrote: »
    We pay our rent and council tax each month with our VISA, but we do it so we get cashback on something we have to pay out on. We do make sure we pay it off in full each month, though, so as to avoid any interest charges.

    I pay the council tax with a cashback credit card too, and pay it off in full monthly.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • m00m00
    m00m00 Posts: 1,755 Forumite
    you can't pay a mortgage with a credit card direct

    but you can withdraw cash with a credit card and pay it that way.

    at extremely punative interest rate/terms which will make the situation worse
    It's a health benefit ...
  • Snooze
    Snooze Posts: 2,041 Forumite
    1,000 Posts Combo Breaker
    m00m00 wrote: »
    you can't pay a mortgage with a credit card direct

    That's not actually true because you can! The banks don't like it, but if it's a one-off then they'll put it through. I know because my best mate did it in January when an unforeseen financial problem caused him to not have the funds available.

    I've also read several threads on the credit card forum where this has been done too.

    Rob
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