No one will deny the fact there have been some shaky times economically in the recent past. Many people are using their credit cards for everything – fuel for their vehicles, clothing, going out to eat, grocery shopping, and some are even paying their mortgage or loan payments with their credit cards.

Before you’re tempted to do the same thing, consider the interest on your credit card. Even on the rare occasion when you have very low interest on your credit card, it’s still most likely to be higher than your current mortgage or loan interest. This means even though the mortgage or loan payment has been made (most of which was an interest payment), you’ll also be paying more interest until you have the credit card paid off.

Financial experts recommend paying for your mortgage and transportation needs before you pay credit card bills. Why would they recommend that? The worst that could happen with a credit card is they turn you into the credit reporting bureau and put a bad mark on your credit rating. On the other hand, if you are continually late or miss mortgage and vehicles loan payments, you could very possibly lose your home or your car.

Yes, it’s true that bad marks on your credit rating could greatly affect your ability to receive credit in the future. But if times are tough and it’s a choice between staying in your home or a black mark on your credit, most financial experts will tell you to pay for necessities such as housing, food, and transportation first.

By all means, call the credit card company and explain your situation to them. Be honest about your financial situation, that you simply do not have enough money to pay them right now, and will catch up on your payments when things change. You may receive telephone calls asking for payment but be polite and explain your situation each time. Whatever you do, don’t lose your temper and argue with them.

Adding a mortgage or loan payment to your credit card will also increase the total amount you owe on your card. If you’ve been using your card for purchases without paying it off each month, you may also go over your credit limit which would add large over limit charges to your card. These charges will continue each month until you bring the balance below the credit limit.

Some credit card companies have started suggesting that homeowners use their cards to pay for mortgage payments in order to earn reward points. The prospect of thousands of reward points every month may be appealing, but experts recommend avoiding this practice because the benefit of reward points or cash back at the end of the year just aren’t worth it. The trade-off is questionable.

Think about it this way. Your mortgage payment is $1,200 a month. If you’re paying your minimum monthly payment each month on your credit card, think about how long it would take you to repay that one mortgage payment. Don’t forget about interest on that $1,200. There’s no way to make the idea of paying a mortgage payment with your credit card a winning situation.

Ultimately, the choice of how you use your money when financially strapped is up to you. However, these few reasons why you should never use your credit card for mortgage or loan payments may give you enough information to keep you from making a big mistake.