128,500 'desperate' Scots use credit cards to pay for housing costs

Published on Sunday 10 January 2010 22:25

A "SHOCKING" number of Scots have had to use their credit cards to pay their mortgage or rent, housing campaigners said today.

A survey for Shelter's Roof magazine found that 8 per cent of people they questioned in Scotland who were responsible for paying the mortgage or rent were forced to pay by credit card in the past year. This suggested about 128,500 people across Scotland had paid their mortgage or rent in this way, the charity said.

Shelter Scotland director Graeme Brown urged cash-strapped Scots who are having to turn to their credit cards to seek financial help urgently.

"It is a shocking discovery that over 128,000 households in Scotland are in such desperate circumstances that they need to borrow money on credit cards to pay for basic housing costs," he said.

"If people are already struggling to the extent that they fear losing their home, increasing credit card debt cannot be the answer.

"It is absolutely vital that people using credit cards in this way seek advice urgently. The sooner they seek help, the more options are available."

Similarly, Susan McPhee of Citizens Advice Scotland, said: "It is worrying that such a considerable number of people have paid their mortgages and rent using credit, in many cases putting themselves further into debt.

"These past months numerous people have lost their jobs and many have seen a cut in their pay, finding themselves in financial and emotional distress.

"Using a credit card for mortgage and rent payments is a short-term solution with long-term implications.

"Scots who find themselves in a position where they are struggling to make essential payments should seek advice as soon as possible."

The report found that across the UK as a whole an estimated one million families have resorted to using credit cards to pay their mortgage or rent during the past year.