People 'should only use credit cards for essential items'

People 'should only use credit cards for essential items'

While using credit cards can be a great way for people to make large purchases and effectively manage how they pay back the money owed, individuals may want to think twice before using the products when it comes to everyday items.

Yvonne Goodwin, managing director of Yvonne Goodwin Wealth Management - a company providing independent financial advice - has noted consumers might find buying non-essential goods on their plastic costs them more in the long-run.

This is because interest rates on these cards appear to be increasing at a significant rate, meaning shoppers could find themselves stuck in a "nasty spiral" if they do not have the financial means to settle their bills month-to-month.

Ms Goodwin recommended individuals should be "working out the budget and working out the priorities for bills that they need to pay each month compared to what they like to pay".

She added jotting down all incomings and outgoings, to see if there are big differences between the two, could be a good way to get their finances in order.