Secured loans as an alternative to balance transfers
17/04/2008The lack of interest-free balance transfers on the market due to the credit crunch could see more consumers facing high levels of debt, according to one expert.
A spokesperson for National Debtline, an organisation that offers telephone support for those struggling with their finances, said this week that special credit card deals could be virtually "non-existent".
Beccy Boden-Wilks, a debt adviser for the group, said debt from high interest credit cards - which may lead many to consider debt consolidation or secured loans - could mean some people miss repayments in more important areas, such as mortgages.
"One of the major effects of the credit crunch is that people can't manage their large amount of debt as cheaply as they could before … if people can't afford their non-priority debts anymore sometimes they'll stop paying their mortgage," she advised.
For some, a secured loan is a simple and affordable way to tackle credit card debt and consolidate debt repayments into one monthly outgoing.
 © Adfero Ltd
<< Back to News page
|