Are You Relying on Your Credit Card?

by : Reno Charlton

The global credit crunch in the UK has really taken its toll on the finances of households, and many have found themselves unable to keep up with repayments on debt as well as bill payments.

As a result of this many people appear to be turning to credit cards to fund their financial obligations, with some using credit cards to fund their essential spending and other using them to pay off debts and even other credit card bills.

Research was recently carried out by the homeless charity, Shelter, and this showed that there was an increase in the number of people relying on their credit cards to pay bills, debts, and other essential payments.

One charity official said: "Our report shows 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, having to sell possessions or deprive the kids of treats can be devastating to family life."

Many homeowners are also fearful that they could lose their homes as a result of being unable to keep up with repayment on debts and other financial commitments.

Caroline Flint, the housing minister, recently said: "We are taking action to support families who may be facing difficulty because of current market conditions, with ?9m more for face to face debt advice, and free legal advice to all households at risk of repossession."

Anyone that finds themselves relying heavily on their credit card to make payments on bills and other essentials such as their mortgage should seek advice from industry officials, as this could be a sign of ongoing financial problems that could otherwise be exacerbated.