Credit cards 'are not for day-to-day expenses'

By Sarah Engle, Fri 28 May 2010 - Published in Credit Cards

Some Brits appear to be relying on credit cards to pay for their living costs, new research has claimed.

A poll by price comparison website moneysupermarket.com found that 14 per cent of respondents pay their household bills using a credit card, suggesting almost five million people are resorting to this.

The research also revealed that 43 per cent turn to the products to buy weekly food shopping and 38 per cent purchase petrol with credit.

Furthermore, the survey found that another 2.5 million people regularly make cash withdrawals with their cards, which could cost them a collective Ł90 million a year in increased interest payments.

Kevin Mountford, head of banking at moneysupermarket.com, said: "Used responsibly, credit cards can be an integral part of household budgeting but it's alarming to see so many people using their cards to pay for what should be everyday spending."

Last week, the website revealed that some credit cards treat gambling transactions, the purchase of traveller's cheques, electronic money transfers and postal orders as cash withdrawals.

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