Paying mortgage on credit card 'could lead people to lose their home'

Posted: 14 Jan 2010 10:21:26 GMT

Homeowners who make their mortgage payments on a credit card have been advised against doing so by one expert as he states that it could lead to them losing their home.

Chris Jenkins, co-owner of the Homeowners Advice Centre, says that while some people may believe that paying their mortgage by any means possible is guarding against repossession, the fact is that eventually this credit will run out.

His comments follow recent statistics from housing charity Shelter, which reveal that more than one million people used credit cards to make their mortgage payments over the last 12 months.

Mr Jenkins describes the figures as "frankly terrifying" and advises that people who are doing this need to seek financial help as soon as possible.

"This short-term solution does not address the fundamental problems of monthly outgoings exceeding incomings," he states.

He adds that in the long term, paying their mortgage by credit card will eventually only add to people's financial problems.

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