Consumers 'should seek debt advice' if they are struggling to pay their rent
Consumers 'should seek debt advice' if they are struggling to pay their rent
- Thursday, 6 January 2011Consumers that are struggling to pay their rent or mortgage have been urged to seek
debt help as soon as possible, rather than relying on credit.
Shelter has issued this advice as the charity found that more people are turning to their credit cards in order to pay off their mortgage or rent.
It was found that more than two million people have done this in the past year, which is a 50 per cent increase compared to 2009.
Consumers in this situation have been told to seek
debt advice as paying a mortgage using a credit card could lead to further
debt problems and even repossession of a property.
Campbell Robb, chief executive of the homeless charity, commented: "This is a totally unsustainable situation and one which we fear could see thousands more families pushed into the spiral of debt, eviction or repossession and ultimately homelessness."
Brits who are already in
credit card debt may be reassured by the changes being made to the way in which outstanding balances are paid.
Now the most expensive debt on a credit card will be paid off first to ensure consumers do not accrue more debt through high interest rates.

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