Secured loans and rising credit card fees
31/12/2007More people could turn to secured loans and debt consolidation next year as one expert predicts that credit card debt could continue to rise.
A spokeswoman for Moneyfacts Group, an independent financial advisor, said that interest rates on credit cards could see further increases in 2008 as lenders look to limit the damage of this year's credit crunch.
Samantha Owens, head of personal finance at Moneyfacts, said that there will be some card providers offering good initial deals but that the subsequent interest rates could be damaging for some.
"The credit card market has been offering really good deals and low rates for such a long time and obviously with the credit crunch coming in … they have to bring the money in another way," she said.
Some consumers looking to tackle their credit card debt may benefit from secured loans, which often have a lower rate of interest than credit card repayments, or a debt consolidation loan.
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