Many people use credit cards and personal loans to move and manage debt, and that’s fine – but secured borrowing must be considered for the long-term.

Most credit cards now sell themselves not as ways to fund exuberant lifestyles, but rather as means as moving and handling debt – most offer a year or even two years 0% APR and a nominal handling fee, so you can move huge amounts to and from credit cards.

Now if done correctly, this is fine. Many sensible people use these credit cards as a breather so as to save enough money to pay off the debt. That’s fine – anything that can be done to minimise outgoings and help save so as to reduce debt has to be a good thing.

But there are other people who have not thought of the long-term – they are just hopping from one card to another, hoping that one day they can afford to pay them off. But all the while that debt is increasing and the chances of being able to move to another low rate card become all the smaller as you fail to pay off your debt.

The only solution to the debt roundabout is by using secured debt to consolidate unsecured debt. By using the equity in a property you can rid yourself of debt and reduce your outgoings in an instant. You can also begin to actively reduce what you owe and improve your credit score.

So talk to a mortgage broker about getting off the credit card merry-go-round. It can’t last forever, and you have to look to the long-term – and that’s always going to be secured borrowing.

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

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1. Tories Say Save, Don’t Spend
2. Credit Card Cheques To Be A Thing Of The Past
3. Use Your Equity WIth A Secured Loan
4. A Third Cutback On Essentials
5. Credit Cards Still Hitting Borrowers