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Newsletter

People are 'turning to loans and credit cards to make ends meet'

By Sarah Engle, Thu 3 Jul 2008 - Published in Loans

The number of people taking out personal loans in the past year to help them with mortgage or rent payments has increased, according to moneysupermarket.com.

Research by the organisation also found that nine per cent of people have turned to credit cards to cover the rising cost of housing.

Some twenty per cent of people in their forties said they had used loans or credit cards in order to survive financially, the survey reports.

Tim Moss, head of loans and debt at moneysupermarket.com, said: "People have to start ranking what they are spending their money on. You need to rank your mortgage or rent and food at the top and work your way down from there."

In July, £30 billion worth of mortgage deals are due to end and Mr Moss states that many more people may find themselves facing much higher monthly repayments.

Meanwhile, debt consultancy Thomas Charles has warned that people could be at risk of losing their homes if they find they cannot pay their credit card bills.