People 'Paying Mortgages With Cards'

Some Britons are using their credit cards to pay off their mortgages - potentially locking themselves in to a debt spiral.

A study from charity Shelter, released today, showed that over four million households had used their credit cards in this way over the past 12 months. This is not a recommended way of making repayments: the average credit card rate is much higher than the average mortgage rate, meaning that any repayment of housing costs is cancelled out by the growth of extra debts elsewhere.

The Shelter report also found that six million Britons are suffering "stress or depression" due to their housing costs, while two million find that making mortgage or rental payments is a "constant struggle". Even more worryingly, a total of 400,000 were shown to have fallen behind with their housing payments.

Shelter chief executive Adam Sampson said: "Our new report and campaign show just how difficult it is for ordinary people to cope with spiralling housing costs, and how desperately unaffordable housing has become.

"People are going to extraordinary lengths to ensure they pay their rent or mortgage, but the affects of stress or depression…can be devastating to family life."