Britons are incurring £90 million in annual charges by relying on their credit cards to pay their household bills.
This could inspire people who have invested in property to take out an equity release scheme, which could boost their finances and help them avoid costly charges.
A recently-published report from moneysupermarket.com has revealed that 12 per cent of cardholders use their accounts to pay monthly bills, while a further 2.5 million people use credit cards to withdraw cash.
Kevin Mountford, head of banking at moneysupermarket.com, said: "If you are using a card in this way, and not paying off the full balance each month, then you really do need to review your circumstances, as this is the first sign of financial difficulty.
"Those consumers who are turning to credit cards to fund basic household bills on a regular basis should be hearing alarm bells, as this habit needs to be avoided wherever possible – it’s really a case of robbing Peter to pay Paul."
Homeowners aged over 55 years who are curious about how much cash their property could generate for them can find out by using the equity release calculator provided by Key Retirement Solutions.
Posted by Christian O’Leary
