The cost of taking money from an unsecured credit card continues to rise, making secured finance all the more appealing during a recession.

Taking money from a credit card is getting even more expensive, according to uSwitch.com – in 2005, the average APR for cash withdrawal fees was 21.22% APR, this has increased by 41% to 29.97%, costing consumers up to £161m a year in interest

Also balance transfer fees are still rising – the website found these fees have soared from an average of £49.66 to £54.09 – with 7.8 million balance transfers carried out each year this costs consumers £422m.

In total, moving money with credit cards will cost consumers a whopping £864m over the next 12 months alone – if you are relying on moving unsecured money about then you need to talk to a mortgage adviser and seek out a cheaper alternative.

Using secured finance instead of a credit card will save you a fortune every month. Consolidating debt, financing a business or a home or even freeing up a bit more cash can be more safely and more cheaply with your home’s equity, either through a secured loan or a remortgage.

Unsecured finance will always end up costing you dear – secure your money and start saving and stop spending.

SOURCE: uSwitch.com, 13/07/09

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