Landlord insurance protects against rising credit card debts
The Bank of England recently announced that UK credit card lending has increased by £0.1 billion throughout the month after an upward trend seen in a £0.2 billion average increase over the previous 6 months, which could impact those in the buy-to-let sector.
With the increasing interest on credit card repayments those in rented accommodation could struggle to make their rental payments as well as make credit card repayments, falling into rent arrears.
Chris Tapp, director of Credit Action said, “Using a credit card to make purchases has become so much a part of their everyday lives that they are dependent on it to get by. This is massively worrying because it is not sustainable for the economy or for individuals.
Property investors should protect themselves from tenant arrears by ensuring they take out the appropriate buy-to-let insurance which includes cover for tenant arrears and the legal costs involved.