Credit cards 'should fit in with budget'

By Sarah Engle, Tue 1 Jun 2010 - Published in Credit Cards

Homeowners need to realise that making mortgage repayments with credit cards is "financial suicide", according to an expert.

A recent poll by moneysupermarket.com found that some people are using credit cards to pay for their day-to-day expenses, with 14 per cent using them for household bills and seven per cent regularly withdrawing cash with the products.

Richard Sorsky from the UK Insolvency Helpline Debt Advice Service said that withdrawing cash on the cards to cover mortgages should not be considered by anyone, as this can be disastrous for their financial health.

The expert also cautioned against using credit cards to pay for shopping on the high street unless people can pay off the balance at the end of the month.

"You've got to live within your budget; don't use your credit card for those [purchases], use credit cards for emergency items," he commented.

Mr Sorsky also revealed that research from the UK Insolvency Helpline Debt Advice Service found that some people are paying their tax bills with their credit cards.

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