Homeowners are increasingly turning to plastic to service their debts as price rises eat into surplus household incomes, a leading UK debt management service said today.

A survey by Payplan, conducted over the past month, showed that 50 per cent of the 8,200 people who contacted the service said they had resorted to using a credit card to pay their mortgage or a utility debt.

The Bank of England today announced inflation had risen to 4.7 per cent, fuelled by a 27.7 per cent rise in energy prices, exceeding analysts’ forecasts, which ranged from 4.4 to 4.6 per cent.

Homeowners battling rising mortgage repayments have been among the hardest hit by the spike in inflation.The typical family is left with a mere £270 a month to pay bills after mortgage repayments, food, medical, and transport costs are deducted from the average £2,200 monthly income, Payplan said.

John Fairhurst, managing director or Payplan, said: “After living expenses, there isn’t enough money in the kitty to pay off their debts.”

He added: “Today the average homeowner calling Payplan for help owes over £40,000 in unsecured debt, compared to the average £27,000 owed by renters. Any inflationary price increases have a catastrophic effect on their budgets.”

However, as lenders become more cautious about providing consumers with credit cards or personal loans, homeowners will find they are increasingly unable to fall back on credit cards to pay bills, Fairhurst warned

He said: “Small debts previously dealt with by juggling credit are now becoming unmanageable much faster.”