Secured loans customers warned on multiple credit card debt
19/02/2008Juggling multiple credit cards can lead to overspending and unnecessary debt, one expert has suggested.
According to a spokesman for the Consumer Credit Counselling Service (CCCS), some people have a number of cards that they use for different purposes or to take advantage of different rates, but this can lead to financial confusion.
James Ketchell, spokesperson for the CCCS, said that as opposed to other European countries, the UK is more likely to suffer from bad habits or financial mismanagement due to its tendency to rely on credit cards.
"I think people need to be careful and be aware this isn't free money. They need to really be aware that the money they're using will have to be paid back at some point," he said.
Many people look to debt consolidation with secured loans as a way to tackle expensive credit card debts.
According to a study conducted by Datamonitor, UK consumers in 2006 had an average of 1.4 credit cards - the highest number in western Europe.
 © Adfero Ltd
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