More people are still using short-term credit card debt as an answer to their financial problems when instead they should be looking to long-term solutions.

The latest Bank of England figures showed that borrowers owed a combined £61.5bn to credit card companies in January. That's an increase of £300m in just a month.

But how can you get out of the cycle? Every month the repayment rate is high, your other debts and responsibilities do not go away and there is never enough money to begin really getting on top of the credit cards.

That's why you need to consider a secured loan if you are struggling to handle the credit card debt. By consolidating the debt onto your mortgage you exchange double-digit rates for single digit rates, and you take the pressure off the rest of your finances. That allows you to pay down any other debts you may have and gives you space to save money for the long term.

A spokesperson for debt management company Gregory Pennington said: "Credit card debt is a growing problem for many people, and it`s vital that anyone struggling to repay their debts seeks independent debt advice."

SOURCE: Gregory Pennington, BoE, 05/03/10

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An estimated 12 million Brits are funding their day to day spending through their credit card balances, creating more debt problems for themselves in the future.

According to the Post Office, 38% of all Brits intend to use their unsecured debt in January for daily purchases such as grocery shopping. It says reflects the extent to which the recession impacted on people's finances during 2009, with many more set to suffer financially well into 2010.

Unsurprisingly, 2.6 million people expect they will end up spending more on their credit cards this January compared to January 2009. And it's not just in January when people believe they will feel the pinch – a further 3.3 million expect they will up their unsecured borrowing overall in 2010, with 3% planning to take out another credit card or increase their credit limit.

When it comes to repaying credit, almost half of all credit card holders have no plans to pay off their credit card bills in full each month and six per cent will only pay off the minimum amount. A further one in five believe it will take them over a year to pay off their unsecured debts.

Az Alibhai head of lending at the Post Office says: "The continued trend for people to rely on their cards for basic day-to-day purchases is a concern. Whilst the recession has left many with no choice, these debts build up quickly if not paid off in full each month, and can be extremely costly over time when interest is added."

The worst debt you can have is spiraling unsecured debt. By consolidating your credit card balances into secured debt you can reduce your outgoings, improve your credit rating and give you some time and space to start getting back into the black.

SOURCE: Post office, 20/01/10

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If you are worried about your financial future during this recession the first thing to do is to stop worrying – you will be able to find solutions to any secured debt problems with a positive, can-do attitude and a new saving plan.

Unfortunately not everyone is so confident – in fact, according to Scottish Widows, people's confidence in their own finances has also been dampened, with more than a third of people saying they are negative about their long term finances compared to last year. There are similar levels of concern about day to day cash flows – with 37% admitting they feel pessimistic about their short-term finances.

When it comes to our personal worry-ometer, physical wellbeing is a key concern for people, with less than half feeling optimistic about their long term health. However it's not all doom and gloom, with two thirds saying they feel optimistic about their family life – proving that even though the economy continues to struggle, people still feel good about their family.

Also, two thirds of people admit to feeling pessimistic about the current economic situation – with just one in ten proclaiming they feel positive in their outlook for the economy.

Alison Morris, head of commercial management at Scottish Widows comments: "It's not surprising that the nation is feeling downbeat considering the economic turmoil that the country has been through in recent months, but this could also be the ideal time for people to review their finances and really sort out their priorities.

"No one wants to live in fear about their day to day cash flow, so if anyone can afford to put some money aside for a rainy day then they should start as soon as possible. Although green shoots may be starting to emerge from the recent economic turmoil, the downturn of the past year should be the wake up call people need to start taking their finances in hand.

"Anyone worried about their longer term finances and retirement should stick to the golden rule and try and save 12% of their income. It might seem like a lot now, but it will be worth it in the long run. If you follow this rule your concerns over retirement savings will start to reduce."

SOURCE: Scottish Widows, 10/09/09

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If you are having a tough time keeping up with all your financial demands, maybe it's time to consider consolidating some of your debts using a secured loan.

According to moneysupermarket.com, more than three-quarters of Brits struggle to pay their utility bills; it's getting so bad that one in six people is left shivering as they can't afford to heat their home this winter.

Scott Byrom, utilities manager at moneysupermarket.com says: "Our research shows that people are now resorting to drastic measures by not turning on their heating at all because they can't afford it. It's clear to see that sky-high energy bills have been far beyond what people can afford."

Many of these people may not be able to pay their bills because they are over-stretched: maybe they have a few credit cards, a store card or two and even some personal loans. All these things can add up, especially with little chance of a pay increase or bonuses this year. That's why, if you are at home shivering because your gas bill is the final straw, you need to consider consolidation.

Using some of your home's equity you can pay off all those debts, leaving you with your mortgage and a secured loan to meet at the end of the month. This will give you space to save, room to breathe and some extra money to afford to turn up the radiators and start living a decent life again.

SOURCE: Moneysupermarket.com, 30/01/09

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

UK personal debt swelled to a huge £1,456bn in November 2008 – proving more than ever that the unsecure debt bubble must be let down gently before it pops.

According to the charity Credit Action, this huge was an increase of £56bn on 2007 figures – meaning personal debt has now forged ahead of the UK GDP.

The only way people are going to be able to control this unrelenting mountain of debt is by consolidating and taking sensible steps towards securing and controlling the red.

Worryingly, the daily increase in UK debt is now a whopping £154m, with one person every 4.8 minutes being declared bankrupt or insolvent – and that’s no surprise when you find out that the UK is paying £252m in interest alone.

This has to change, and it can. If you are one of those who are part of this huge debt, take steps to secure all your responsibilities with a secured loan – you will find almost immediately that your life is much better knowing you are not paying nearly as much as that daily £252m. You will also be able to sleep a little better knowing your house will be safe, and you will not be one of the nearly 300 made bankrupt every day.

Debt is an ever-growing, dangerous thing. Don’t let it control you – control it instead with a secured loan.

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