Credit cards can be a 'useful' budgeting tool
Cards also offer holders protection on high value goods, says expert
Credit cards can be a useful budgeting tool if used correctly, according to a financial expert.
Annie Shaw, editor of financial advice website cashquestions.com, claimed that one of the key benefits to using a credit card is the fact that holders can learn how to budget effectively during an introductory offer period.
Another advantage of credit cards is the various types of protection against default available under the Consumer Credit Act, she added.
"For instance, if you are ordering something, perhaps in the January sale, and the company goes bust in the meantime, you can recover your money if you pay by credit card under section 75 of the Consumer Credit Act," she said.
"So that is a very good reason to use your credit card, even if you have got loads of money in the bank.
A recent study by the Post Office revealed that more than a third of UK credit card holders will rely on credit cards to pay for essentials in January.
Posted by Jack Ramsey
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