128,500 'desperate' Scots Use Credit Cards To Pay For Housing Costs

[The McGlashan]

http://thescotsman.scotsman.com/scotland/128500-39desperate39-Scots-use-credit.5970324.jp

If people are already struggling to the extent that they fear losing their home, increasing credit card debt cannot be the answer.

It'll end in tears, sleepless nights and worse.

Imagine, paying 16% (ish) plus 2.5% cash advance fee to repay a 6% (probably) interest debt.

[Jadoube]

http://thescotsman.scotsman.com/scotland/128500-39desperate39-Scots-use-credit.5970324.jp

It'll end in tears, sleepless nights and worse.

Imagine, paying 16% (ish) plus 2.5% cash advance fee to repay a 6% (probably) interest debt.

I agree with every word you say. An insane thing for people to do.

OTOH the pedant in me notes this survey is PR presented by a VI,

Quoted elesewhere to be 2022 respondents across the country as a whole (not sure whether GB or UK)

That means fewer than185 respondents in Scotland (assuming the best case of GB rather than UK for the whole survey)

So the 8% mentioned in the Scotsman is only 15 people.

Given we quibble about data for house price indices being too small a sample to be valid I think its fair to say the paper on which this article is printed is only fit to be cut into squares and hung on a hook in the outdoor privy.

Reputable market research companies tend to require that PR quoting their figures is cleared by their statisticians before publication - and none would allow this stuff in the Scotsman.

Neither the Scotsman or the BBC quote the source of the research, which they would usually do, so I assume shelter did their own, or suppressed the name of the research company when said company refused to allow their name to be put to dodgy figures.

An online survey of that size would cost Shelter a couple of hundred quid. Cheap for a bit of PR. Everyone ends up talking about the topic and nobody bothers to check whether the data is valid. An urban myth gets born.

It really annoys me that charities get away with behaving like this. There may come a time when something important means they need a reputation for integrity, and they've lost it.

[The McGlashan]

I agree with every word you say. An insane thing for people to do.

OTOH the pedant in me notes this survey is PR presented by a VI,

Quoted elesewhere to be 2022 respondents across the country as a whole (not sure whether GB or UK)

That means fewer than185 respondents in Scotland (assuming the best case of GB rather than UK for the whole survey)

So the 8% mentioned in the Scotsman is only 15 people.

Given we quibble about data for house price indices being too small a sample to be valid I think its fair to say the paper on which this article is printed is only fit to be cut into squares and hung on a hook in the outdoor privy.

Reputable market research companies tend to require that PR quoting their figures is cleared by their statisticians before publication - and none would allow this stuff in the Scotsman.

Neither the Scotsman or the BBC quote the source of the research, which they would usually do, so I assume shelter did their own, or suppressed the name of the research company when said company refused to allow their name to be put to dodgy figures.

An online survey of that size would cost Shelter a couple of hundred quid. Cheap for a bit of PR. Everyone ends up talking about the topic and nobody bothers to check whether the data is valid. An urban myth gets born.

It really annoys me that charities get away with behaving like this. There may come a time when something important means they need a reputation for integrity, and they've lost it.

Thanks for your informed perspective, most enlightening and much appreciated.

Indeed, a tiny sample size to spawn an urban myth and, as such, a bit of a non-story. However, those of us who wish to see a return to affordability in family housing should embrace the power of myths. I believe that this type of report, along with others current in the press this weekend, may mark a tipping-point in public sentiment (whether true or not).

Reports like this one from unbiased.co.uk (Yeah, right):

http://www.unbiased.co.uk/find-a-mortgage-adviser/media/press-releases/-/page/uk-homeowners-adopting-european-rental-habits/

Karen Barrett, Chief Executive of Unbiased.co.uk comments, “While there are mixed messages as to whether house prices are now starting to rise again, it is clear that the property market crash has had a profound effect on the way people view their homes. For many who own their own home, the worry and stress of this through the property market volatility has caused them to re-think about whether long-term renting is a viable option for them.

“It has also caused renters to think about their long-term options, and while some still want to get on the property ladder despite the recent crash, many have now decided that the British status symbol of owning your own home no longer has the same importance."

Money is to be made in determining what the next 'status symbol' will be.

Edited January 11, 2010 by The McGlashan