Easing credit card debt with secured loans
17/04/2008The credit crunch could have an adverse affect on those who may have run up excessive debts over the past few years, it has been suggested.
According to a spokeswoman for Moneyfacts Group, an independent service which offers advice and support on a range of financial issues, the high level of interest associated with credit card use can have an impact for those who are not careful.
Samantha Owens, head of personal finance at Moneyfacts, said that recent instability in the financial market would have little effect on cautious spenders, but those who are not could face a tough time.
"If you're the kind of person who has left balances on your credit card [which] are accruing high levels of interest then that isn't really how you should be using credit cards," she warned.
"They are very high forms of interest borrowing."
Many people find that debt consolidation with a secured loan can be one way to ease the high interest debt accrued by credit card use.
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