Credit cards used to pay the rent
Posted on 13. Jan, 2010 by Matthew Carter in The HomeLet blog
A YouGov poll for housing charity Shelter has revealed that more than a million people could have borrowed money on a credit card to pay their mortgage or rent. This could potentially cause tenant defaults to soar over the next year.
The survey asked over 2,000 people if they had used a credit card in the last twelve months to pay their rent. 6% of respondents confirmed that they have, suggesting that the national figure could be more than a million people.
The problem was most alarming in London with a staggering 12% using credit cards to pay their rent.
John Boyle, HomeLet Managing Director, says: “Tenants who are accumulating debt to pay the rent could end up in significant arrears with their landlords. In 2009 HomeLet Rent Guarantee claims rose by 9% when compared to 2008. We expect this figure to rise again in 2010, as more tenants struggle to meet their financial obligations.”
“If a tenant defaults the landlords is often put in and extremely difficult position, whilst they may be sympathetic the mortgage still needs to be paid. Sadly, in 2009 we saw an increase in illegal evictions, with some landlords choosing to take matters in to their own hands. This is why I’d urge landlords to consider protecting their income with Rent Guarantee. If a tenant defaults we pay the missed rent and handle the process on behalf of the landlord, ensuring that the tenant is treated fairly.”
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Jan 17th, 2010
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Phillis Labreche
Mar 22nd, 2010
thanks for the great article. was a great examine.