As the credit crunch continues to bite, a new report makes gloomy reading for Britain’s households.  According to the homeless charity Shelter, over 4 million families in the UK have payed their mortgage or rent with a credit card in the last year.

According to This Is Money.com, this is a sign that many households have become desperate about the state of their finances.  Credit cards, with their high interest rates, are one of the most expensive ways to pay off debt.

The ‘breaking point’ report also describes families borrowing money from friends and finding other ways to make ends meet.  The figures show that six million households are suffering stress or depression.  6.3 million (one in four) are spending less on food and three million (one in nine) have sold possessions.

Shelter chief executive Adam Sampson said: “Our new report and campaign show just how difficult it is for ordinary people to cope with spiralling housing costs, and how desperately unaffordable housing has become”