Accumulating credit card debt in an effort to keep up with mortgage repayment demands can be a beneficial financial move under certain circumstances, it has been claimed.
Stephen Rose, director of Debt Advice Bureau, makes clear that if mortgage debt interest rates are higher than those associated with a given credit card deal then paying off the former via the later may not be a bad move.
Mr Rose’s comments came after a recent study by YouGov on behalf of Shelter found that six per cent of British homeowners have paid off part of their mortgage through credit card borrowing.
“There are people out there who have technically bought a house on a credit card and they’ve done very well,” said Mr Rose.
“I bought my first property off the back of credit cards and the credit cards were a hell of a lot less than a mortgage,” he added.
Staff at the Debt Advice Bureau provide support services to thousands of people each month in the UK and the organisation operates on a not-for-profit basis.