New research from Shelter reveals that more than two million people have used credit cards to pay their mortgage or rent - an increase of almost 50% in a year.
The exclusive YouGov poll for Shelter reveals how people constantly struggling with their housing costs are being forced to take drastic measures with credit cards in order to keep a roof over their head.
The survey, conducted in August 2010 of 2,234 people in Great Britain, asked if respondents had borrowed money on their credit card to pay their rent or mortgage in the last 12 months - 6% of respondents said yes compared to just 4% in November 2009, suggesting a national figure of over two million people.
Shelter is warning that many of these people could be starting the New Year with the threat of homelessness hanging over them. Not only can defaulting on credit card payments lead to repossession in very severe cases but just one single thing, like a bout of illness, rent increase or drop in income, is all that's needed to push people into spiral of debt and arrears that can lead to the loss of their home.
Campbell Robb, Chief Executive of Shelter said:
"This research brings into sharp focus how keeping a roof over their head has become a daily struggle for millions across the country.
"This is a totally unsustainable situation and one which we fear could see thousands more families pushed into the spiral of debt, eviction or repossession and ultimately homelessness.
"Using credit cards to pay the rent or mortgage is simply robbing Peter to pay Paul. With the average credit card interest rate now standing at over 16% it is the worst possible course of action.
"Already someone faces the nightmare of losing their home every two minutes, and we would urge every single one of these people now relying on credit to keep their home to seek advice urgently."
Shelter has a network of advice services across the country who are ready to give free advice on debt and housing issues, as well as a comprehensive advice website.
Actress Jaime Winstone is also supporting Shelter's debt campaign by starring in a new short film launched today. In the film, Jaime re-enacts the true story of eighteen year old Sarah who in desperation turns to credit cards to cover her rent, leaving her in debt and in fear of losing her home.
Shelter hopes the film will help raise awareness of the dangers of using credit cards in this way and encourage people in trouble to seek advice.
To view the film online visit shelter.org.uk/debt
Welfare benefits are set to cost about £1.4 billion more than previously expected over the next four years because of rising unemployment - according to the Government's independent financial watchdog.
the Office for Budget Responsibility Has found that the unemployment benefit bill is to be £700 million higher than thought. Further, the cost of housing assistance will also grow by £700 million. Main contributing factors are larger numbers of people claiming Jobseeker's Allowance, or falling into lower wage brackets,
The analysis is based on the revised unemployment estimate after the June budget, when it changed its forecast from 6.3% to 6.5% for 2014. Since then the forecast has been revised upwards again, to 6.7%, but no costing has been carried out for that figure yet.