Council tenants are being encouraged into paying their rent arrears on credit cards, it was claimed yesterday.

A survey of 104 local authorities found that 94 of them prefer tenants to pay their rent by credit or debit card.

In the last month, 3,330 payments for rent arrears were made by credit card.

Ccritics say that this is encouraging hardpressed families to run up further debts.

More housing associations are also taking payments via credit cards. The Lib Dems say 16 of the 20 biggest housing associations allow card payments.

Housing spokeswoman Sarah Teather said: “Gordon Brown’s relaxed attitude to huge levels of personal debt partly led to the current difficulties, yet the Government still hasn’t learned its lesson.

Welsh Liberal Democrat housing spokesman Peter Black, said: “Although I accept that people must handle their finances in the way that best suits them, it is nevertheless disturbing to see such a wide use of credit cards to pay for basic provision such as the rent on somebody’s home.

“The Government has given a green light to housing associations, Government agencies and councils encouraging vulnerable families to pay off debts with costly credit cards.Welsh Liberal Democrat housing spokesman Peter Black, said: “Although I accept that people must handle their finances in the way that best suits them, it is nevertheless disturbing to see such a wide use of credit cards to pay for basic provision such as the rent on somebody’s home.

“What concerns me as well is how few councils have policies in place to help those who are obviously struggling with their rent because they are routinely paying by credit card.

“Policies should be put in place, like those at Swansea Council, to refer people to specialist financial help agencies when needed.

“Although the total credit card payments are a small proportion of the amount routinely collected by Councils in rent these figures do show the depth of the credit crisis facing us.

“It is not sustainable to keep living on credit in this way and we need to make sure that there is the appropriate advice and support in place to prevent short term measures such as this turning into a crisis.”