Using plastic to pay of mortgage 'not always bad'

Using a credit card to pay of a mortgage is not necessarily a bad thing, as long as it is not causing homeowners to spiral further into debt.

According to the Debt Advice Bureau, using plastic to cover repayments can be a help to many people as long as it is "a simple credit transaction".

Director Stephen Rose, said: "If people are using credit cards it may mean that there are cash flow problems anyway, it really depends what they're paying on the credit card versus what they are paying on the mortgage.

"If somebody's paying considerably less on their credit card than they are on their mortgage then it's a good thing, but if they're paying more on their credit card than they are on their mortgage then it's a bad thing."

His comments come following a report form the homeless charity Shelter which found that six per cent of homeowners or tenants questioned relied on a credit card to make payments, "equating to a national figure of more than a million householders".

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