Secured loans and credit card debt
12/02/2008Many consumers are attempting to tackle their credit card debt by switching providers rather than clearing their balances, one expert has noted.
According to a spokesman for MoneyExpert.com, more people than ever are switching their credit card providers as a way of reducing their repayments - but this is not always the best approach.
Commenting on a recent report, which revealed that over 5.9 million consumers had switched credit cards in the last six months, MoneyExpert.com chief executive Sean Gardner said that changing providers can sometimes be damaging.
"The worry is that consumers will see a zero per cent deal as a chance to service debt rather than repay debt. That is a precarious situation as sitting on debt often leads to spending more elsewhere," he said.
For many people, debt consolidation with a secured loan can be a more favourable way of clearing high interest credit card debt.
 © Adfero Ltd
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