4.1 Million Use Credit Cards for Mortgage or Rent

There’s nothing wrong with debt in itself. Without debts such as mortgages and car loans, we wouldn’t be able to live our lives the way we want. But once we can’t afford our debt repayments, it’s time to ask for help, seeking expert debt advice or looking into professional debt solutions such as a debt management plan, debt consolidation loan / mortgage, IVA (Individual Voluntary Arrangement) or Trust Deed. The alternative could be doing something we’d normally never consider – like paying the mortgage (or other large debt) with a credit card.

According to housing and homelessness charity Shelter, about 85% of the UK’s £1.4 trillion personal debt is secured against property. The good thing with secured debts, of course, is that they normally come with a lower APR (Annual Percentage Rate) than unsecured debts. Nonetheless, a mortgage is by far the biggest debt most people will ever have. It’s a commitment to spend a long time paying a lot of money every month. If the mortgagor runs into any kind of financial trouble, it can be a huge burden.

Here’s the scary part. In October last year, Shelter revealed that over a million people had been forced to pay their mortgage or rent with a credit card in the previous 12 months. Just eight months later, that number had quadrupled – published in June 2008, Shelter’s ‘Breaking point’ report revealed that ‘4.1 million households (16%) used credit cards to help meet their housing costs in the last 12 months’.

Credit cards may seem like a good way to deal with a cash shortfall in the short term, but they’re no long-term debt solution. “When someone pays a month’s mortgage or rent with their credit card, they’re not solving their debt problems – they’re just putting them off,” says a spokesperson for financial solutions company Think Money. “They’ll have to repay that debt sooner or later, and the longer they leave it sitting on their credit card, the more they’ll end up paying in interest.”

What’s more, any inability to pay essential bills like rent or mortgage could mean there’s something seriously wrong with their financial situation in general. “Anyone in this situation should immediately review their financial situation and figure out where the problem lies. It could be that they can’t really afford the mortgage / rent payments, or it could be that their other debts and expenses are simply taking up too much of their income. Unless they’re certain that it’s a short-term problem (caused by a one-off expense, perhaps) it’s essential they take action to regain control of their finances.”

The important thing is to act swiftly, but not panic and grab the first debt ‘solution’ that comes to mind, like using a credit card for this kind of debt payment. “Financial solutions companies like Think Money can help people find a much better answer to their debt problems. A debt management plan, IVA or Trust Deed could be a good way to reduce their monthly payments and regain control of their finances, but everyone’s situation is different, so it’s vital to seek debt advice from a company that offers a wide range of debt solutions.”

How To Get A Raise

I have to start by saying that the first and best thing you can do to get a raise from your employer is to make sure you deserve one. Of course, this should go without saying. However, many employees think that simply being at their job a while is enough reason for more pay.

Most employers will disagree. Unless you are simply arguing for a cost-of-living increase, you really should provide more value to your employer if you expect more money.  If you're not doing a great job now then, start tomorrow, and do better for a while before you try to get a raise.

Okay, so you deserve a raise. But don't expect your boss to notice this or think of it on his own. Most likely, you will have to sell him or her on the idea, so you should be fully prepared to do that. Find out what others in your position make. See if you can discover how much of a raise some of them have received in the past. In the United States, you can use the U.S. Labor Department's Bureau Of Labor Statistics website at http://www.bls.gov/bls/blswage.htm to see what the average pay of various jobs is.

Ask for a realistic raise, based not just on national norms, but on what people in your particular company make. Always aim a little high. This lets the boss negotiate your raise down to what you really hope to get. Consider everything you want before you ask for a raise too. For example, are you also seeking benefits or a better position?

Okay, so you have decided how much you will be asking for. Now make a list of the things you have accomplished. Be ready to show how these are linked to some measurable increase in profits if possible. At least make a reasonable argument for how they should add to the company revenue. Try to be specific, and don't lie about anything. You want to show that you are clearly valuable to the company - and that you know you are.

The timing of your request for a raise matters. Don't ask for a raise when the boss is in a bad mood, for example. If you've got easy access to the supervisor who'll make the decision, wait for a noticeable good mood, then ask to speak with her, or him. On the other hand, if you have to make and appointment, schedule a time when the boss won't be too distracted, like late afternoon, when lunch is past and his work is caught up.

You should always know what your options are and what you are willing to do according to the response. In my working days, for example, I got what I wanted several times by threatening to quit. But perhaps this only worked because I meant what I said. You might lose a job you want to keep if you bluff. What you will say? What you will do if the boss says no? What if he offers less than you ask for? Can you wait and bring it up again later? Can you look for other employment? How about mentioning this job search to the boss?

Consider these things carefully, and be prepared if you want to get a raise.