Secured loans or credit card debt?
20/03/2008Many people are suffering from the effects of unmanageable debt due to not understanding the charges associated with credit cards, one expert has suggested.
According to a spokesman for Credit Action, a non-profit organisation which advises consumers on issues such as secured loans and personal finance, said that it was important for people to understand the expense of a credit card before opting for one.
Chris Tapp, director of Credit Action, said that important issues relating to interest rates and APR levels were essential to making sure that the credit card chosen offers the right package.
"Wherever possible, make sure that what you are borrowing on the card you can afford to pay off the next month. That is the way to avoid getting hit with all kinds of charges," he warned.
Many people choose to consolidate their existing credit card debt with a secured loan as very often the competitive rate associated with such borrowing means they can make significant savings.
 © Adfero Ltd
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