18 September 2008
Indebted homeowners are turning to credit cards to help them meet their monthly mortgage payments, new research has shown. According to a survey conducted by Payplan, half of those who have called the debt solutions provider for advice have used a credit card to pay their mortgage or their gas and electricity bill. Payplan said many homeowners have been forced into taking such action because of the effect that rising inflation is having on their personal finance budgets. Managing Director John Fairhurst said: "Homeowners increasingly have to face up to the reality that after living expenses, there isn't enough money in the kitty to pay off their debts." A recent survey carried out by PayPal revealed that 20% of consumers use their credit cards to help them meet monthly outgoings at least once a quarter. Research from uSwitch.com also found that over the last year, gross credit card lending in the UK has increased by an average of £179 million per quarter.