The number of tenants defaulting on rent payments is expected to soar over the next year amid reports that up to 1 million households have borrowed money on credit cards to pay their mortgage or rent during 2009, according to an exclusive YouGov poll for housing charity Shelter.
The report paints a damning portrait of the state of the nations obsession with finance, revealing that even despite the restrictions on credit and reports of many people paying off personal debt, many people had taken desperate measures in order to keep a roof over their head often resorting to using credit cards.
The survey conducted with 2,022 tenants and homeowners asked if they had paid their rent using a credit card in the last twelve months with 6% of those replying stating that they had.
The worst area affected during 2009 was London with 12% of tenants using credit cards to pay their rent.
Low waged working professionals were most likely to use debt to cover their living costs, with 8% using credit cards to pay the bills.
Even so, 4% of professionals in management also admitted they have been forced to use plastic to defer costs.
In a statement from Landlord Assist, Managing Director Graham Kinnear said “We are acting for a number of landlords where their tenants are considering bankruptcy as they have paid their rent with credit cards to maintain a roof over their head but now cannot maintain their finance payments. By paying the rent with credit cards, tenants are effectively swapping one debt for another. The longer this trend continues the more we will see people struggle to cover their rents and end up in significant arrears with their landlords.”
Kay Boycott at Housing Charity Shelter advises: “It is absolutely vital that every single person using credit cards in this way seeks advice urgently to get the help they need to ensure they don’t lose their home.”
If you are a landlord and are facing similar problems with your tenants then do not wait for things to spiral out of control, contact a Tenant Eviction and Rent Collection Specialist and take action. By contacting a professional who has successfully dealt with similar problems and seeking advice from them, you can act swiftly and legally to protect your interests.
Even if you are sympathetic with your tenant’s situation, there are steps you can take to safeguard your income from rent such as a Rental Guarantee Insurance product.
