Can you give me your opinion on the following matter? My brother who is not that careful what he spends and on what has recently mentioned the possibility of using one of his many credit cards for the purpose of paying off his mortgage. I was somewhat shocked at hearing this. I thought that this was a bit expensive!? But I might be wrong? Please give me your opinion.
Credit card payments of mortgage installments is sometimes practiced by unskilled and reckless investors who have overextended themselves. This procedure is particularly bad as credit cards were not designed for that. They have a much too low limit and they are for extremely short debt coverage with high charges and interest. Paying off long term and usually cheaper loans with short term and high cost credit was one of the significant causes of the 1929 crash.
