Loads of Brits Paying Mortgage with Credit Cards
According to research conducted by ROOF, a magazine published by homeless group Shelter, over a million people in the UK have paid rent or mortgage installments with their credit cards.
Among the list’s biggest offenders were first-time homebuyers, a signal that maybe they should have stuck to renting before jumping into homeownership.
The area hit the worst is the Midlands and Wales, where 9 percent admitted to using a credit card to pay their rent or mortgage.
The study noted that 7.5 percent of consumers aged 18 to 24 said they used their credit card to make a payment in the last 12 months.
These are frightening statistics, and ones that could be mirrored stateside if consumers aren’t careful.
You should never use a credit card to make your mortgage payment unless it’s really your very, very last resort.
The interest rate on your credit card is likely much higher than the interest rate on your mortgage, and a few sizable mortgage payments could max out your credit cards in no time.
That could spell big trouble down the road if you aren’t able to refinance or sell your home if you fall behind on payments.
Not to mention the extra fees and interest these payment services charge consumers for credit card payments.
If you can’t afford it, don’t buy it, especially if it’s your home!
Related Topics:
- Paying the Mortgage with Your Credit Card?
- Consumers Pay Credit Card Before Mortgage
- New Hope for Borrowers with Little or No Credit Seeking a Mortgage
- Credit Card Lates Surge as Mortgage Crisis Rolls On
- Credit Card Mailers Decline on Mortgage Woes
Posted Under: Credit News