Many using credit cards to pay bills and mortgage

According to a recent report many people are now using credit cards to make payments on bills and even on their mortgages, as the global credit crunch continues to make things financially difficult for many households. Tight credit conditions, rising living costs, and higher bills have all taken their toll on household finances, resulting in consumers looking for alternative ways to make essential payments.

One industry official stated: ‘People who use a credit card to withdraw cash may already be struggling under the burden of debt, and are forced to resort to this method of borrowing to make ends meet. They can ill afford to pay the exorbitant rates of interest that most lenders are now charging them.’

There is concern because many people are also using their credit cards to take out cash, and with credit card firms having increased many fees and charges, as well as interest rates on credit cards, many could find that they are burdened with huge levels of debt as a result of using their cards to make regular payments.

In the coming weeks it is estimated that a further 1.7 million consumers may turn to credit cards to fund the payment of bills, mortgage repayments, and Christmas purchases. Even Gordon Brown, the Prime Minister, has warned credit card firms to stop fleecing customers with these high fees and interest rates.