More and more homeowners are turning to their credit cards in order to pay the monthly bills such as utilities and mortgage payments.
According to a UK debt management service, this is due to the current financial climate that has led to prices increasing on everyday, essential items such as food.
A survey conducted by the debt management service over the last month found that half of the 8,200 people who contacted them had said that they had had to resort to paying for their mortgage or utility bills with their credit card.
Recently, the Bank of England announced that inflation had risen to 4.7 per cent which is mainly as a result of energy prices increasing by 27.7 per cent, which actually exceeded analysts’ predictions of a 4.4 to 4.6 per cent rise.
Those hardest hit by these increases have been homeowners who are struggling to keep up with the inflated costs of their mortgage. According to recent findings, the average family are left with just £270 to pay other bills with after paying the monthly mortgage payment, buying food and paying for any transport fees, not to mention any other unforeseen costs that may crop up.
The leading debt advice company who conducted the study also found that after all of these monthly payments had been paid out of the average £2,200 monthly income, families had no money left to start paying off their debts.
The company said that they found the average homeowner who contacted them owes over £40,000 in unsecured debt, whereas renters who contact them usually only owe around £27,000, so any inflation increases have a catastrophic effect on the family’s budget.
However, with many lenders starting to be more cautious about providing customers with credit cards or personal loans, people are finding that they cannot fall back on loans to pay for their bills. This has meant that smaller debts, once easily dealt with by credit cards, are now spiralling out of control.
If you are in need of a loan or credit card, the best thing to do is to compare prices and interest rates offered by different companies. Whether you are after a personal loan or you want to know more about interest free credit cards, comparing the prices will always mean that you can get the best deal available to you.
Many people have had to resort to paying for their mortgage or utility bills with their
credit card .
Many lenders are starting to be more cautious about providing customers with
credit cards or personal loans, people are finding that they cannot fall back on loans to pay for their bills.
Whether you are after a personal loan or you want to know more about
interest free credit cards , comparing the prices will always mean that you can get the best deal available to you.
