Avoid large purchases on credit, expert warns

Those struggling with money and looking to payday loans have been urged to avoid making large purchases on a credit card.

Justin Modray, spokesman for Candidmoney.com, said that while credit cards can be useful in some circumstances, they also have the potential to pave the way to worsened debt problems.

"If you end up borrowing money, credit cards can become a prohibitively expensive way to shop and risk sending you into a descending spiral of debt," he explained.

He said those tempted to use a credit card to make a large purchase on something they would otherwise not be able to afford should really think hard about the consequences of their actions.

"Better to save up for something than rack up expensive debts that could end up strangling your finances," Mr Modray advised.

 Research by MGM Advantage has found that many pensioners cannot afford to live out their lifetime dreams of retirement, with 725,000 regularly relying on credit, such as payday loans or credit cards.

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2011-08-24 12:47:00 © Moneyextra.com