Both consumers and lenders are “irresponsible”

People are using credit cards to fund their lifestyle rather than earning money, claims the Repossessions Advice Centre.

The organisation claims people have got into the habit of paying for petrol and transport tickets with their cards.

It says that to cover the costs of these credit card debts, “an awfully big percentage” of people are re-mortgaging their property.

David Warnes, director of the organisation, said: “People have neglected the need to try and earn more money and spend less money, based on the fact that they were able to get more money from their lender.”

He claims that both borrowers and lenders are equally to blame for the country’s debt problems.

According to the Press Association, 145,000 people had problems with their mortgage repayments this year and the number is likely to increase to 45,000 in 2008. The Council of Mortgage Lenders predicts that repossessions in the UK will increase from 30,000 to 45,000 in 2008.

© Adfero Ltd

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