Related Credit Card Article

"Many paying mortgage and bills with credit cards"

By admin | December 20th, 2008 | Credit Cards

Over the past year, with inflation soaring and the cost of living rocketing, many households have experienced difficulties when it comes to meeting their mortgage repayments, paying their rent, or paying their bills.

In order to avoid falling behind with such payments, it appears that many have been resorting to using money off their credit cards in order to make these payments, with recent research suggesting that over one million consumers have used their credit cards to pay mortgage or rent, and make bill payments.

Many have been withdrawing cash on their credit cards in order to make these payments, and officials have said that this is a very expensive way of making payments, as it means clocking up interest even on cards that are otherwise interest free as well as being charged high fees and charges for taking cash out on the cards. What’s more the interest rates and charges on cash withdrawals and transactions made on credit cards has been rising over the past year, making the process even more costly for consumers.

One industry official said that it was wrong of lenders to financially penalise vulnerable consumers in this way, particularly given the current difficult financial climate.

She said: ‘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.’

It is also thought by many officials that a further 1.7 million consumers will turn to their credit cards in the weeks to come to fund the expense of the festive season, with fewer people now having available cash to spend on Christmas.

Tags: mortgage payments, Credit Cards

Related Articles:

• Credit card providers increase fees

  Although the base interest rate has plummeted to its lowest level in the history of the Bank of England, standing at just 0.5 percent, it has been reported that some credit card providers have continues to increase their fees and rates, resulting in cardholders having to pay over the odds for their credit card borrowing...

• Many still paying bills on credit cards

  Over the past couple of years a rising number of consumers have turned to their credit cards in order to pay for essentials such as food, bills, everyday necessities, and even mortgage or rent payments. The global financial crisis and the recession resulted in many people struggling to make ends meet financially, which is why...

• Late Payment Charges On Credit Cards

  Credit card companies make a HUGE income from people who do not pay their demands on time. These can range from £10 up to £30 then you still must add the interest payments to that for the next month!!!! If you feel that the credit card company has been a little over zealous in charging you...

• Credit card consumers should set up direct debits

  There are many ways in which people with credit cards make repayments on their credit card debt, with some paying by Internet bank or by phone and others paying at a post office or through the bank. There are also people that set up a standing order or direct debit to make their payments on...

• Credit and store card crackdown welcomed by Nationwide

  A major High Street lender has said that it welcomes the recent crackdown on credit and store cards, following recent proposals that were put forward by the government. The proposals by the government have been met with mixed reactions in some parts, and were put forward to the Department for Business Innovation and Skills. The...

Other Recent Articles

Use of credit cards declines whilst payday loans increase

It seems that many consumers may have switching from spending on credit card that can sometimes come with high rates...

By Reno | February 10, 2012 | Read More

Useful Tips for Credit Card Holders

Modern technology offers comfort and convenience that is often helpful for people in a fast paced everyday living. With just...

By admin | February 7, 2012 | Read More

Credit card decision by Lloyds could have serious effect on charities

For many years now, a range of leading and well known charities have been able to boost the levels of...

By Reno | January 28, 2012 | Read More

Many have to rely on credit cards to make ends meet

There was a time when people had credit cards to enable them to pay for occasional larger, more expensive items...

By Reno | January 26, 2012 | Read More

Brits increasingly dissatisfied with credit card providers

According to recent reports, Brits are becoming increasingly dissatisfied with their credit card providers, particularly in the case of the...

By Reno | January 20, 2012 | Read More