Over one million Britons are using UK credit cards to pay for their mortgage or rent, according to housing charity Shelter, with the problem being more acute for the under-25s who are struggling to stay on the property ladder.

The survey of almost 2,000 respondents has found that six per cent of people have used their credit cards to pay for their home; whether mortgage or rent payments. In some parts of the country the problem is even greater where as many as one in ten were using plastic for housing costs, with the 18 - 24-year-old age group most likely to resort to this measure.

With average interest rates charged on credit cards varying between 15% and 19%, the cost of using plastic to pay for housing costs is not only almost three times more expensive than average mortgage rates, but is merely delaying a problem that will become significantly worse and could lead to long-term ruin for those involved in this alarming trend.

Shelter chief executive Adam Sampson explained why he believed people were resorting to such an extreme tactic to pay for their homes: "Ordinary people, under the threat of repossession or eviction are being forced to use more expensive and risky ways of paying to stay in their homes. The number of people affected by the recent credit crunch, interest rate rises and unaffordable housing costs is rapidly rising."

Many debt experts agree that the real problem when paying housing costs with credit cards occurs when the full amount is not paid off each month. If used as a short-term cash flow solution, with the balance then paid in full, there won't be a problem. However, most people using their credit cards to pay for housing are paying the minimum amount, thereby accruing interest on top of an unpaid balance which soon develops into spiralling debt.

Debt experts are blaming the financial institutions for allowing customers to borrow too much money - both as mortgage advances and credit card deals - and Malcolm Hurlston, chairman of the Consumer Credit Counselling Service, believes that there is worse to come before Christmas. He points out that nearly 12,000 fixed rate mortgage deals will expire and revert to SVR, adding hundreds of pounds per month to housing costs.

The debt agencies and charities are unanimous in their declaration that UK credit cards should not be used to pay for housing costs. Those who find themselves in that crippling financial situation should immediately seek help from debt counsellors and credit agencies, before they not only lose their home, but also put themselves on the road to life-long financial ruin.
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Adam Singleton is an online, freelance journalist and keen gardener. He lives in Scotland with his two dogs.