Credit cards have become even more dangerous and even more expensive over the last few months – it's time to ditch the unsecured debt and consolidate sensibly.

The problem is 'personal pricing' in the credit card market is making it very difficult for large numbers of consumers to prejudge what rate they will be offered according to Defaqto.

The company says many credit card providers now use ‘personal pricing' where the interest rate charged is based on that individual's details, credit record and repayment history. For those who are actually offered a credit card typically two thirds will get the best rate and up to one third will get offered a higher rate.

It's those one-third who need to stop using unsecured debt as a means to get by right away. Those higher rates prejudged on credit score will only lead those people further down into more debts, exacerbating their problems.

David Black, banking specialist at Defaqto says: "It always used to be fairly straightforward to get a credit card but providers have become increasingly choosy about who they will lend to and, if they will lend, at what rate. Many consumers don't even get to that stage because the number of credit card applications being rejected has shot up."

If you are applying all over the place for expensive credit so as to pay the bills or just get through the month, stop. Talk to a professional adviser about consolidating your debts into one easy payment. It is possible to say no to unsecured debt, but only with the help of some trustworthy, sensible financial help.

SOURCE: Defaqto, 21/04/10

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If you do not take control of your debts and take a proactive approach to your problems then you may be a slave to your debts for ten years.

According to insolvency body R3, a quarter of debt management plans will last ten years or more, even though the plans are meant to be a short-term repayment plan between an individual and their creditors.

Peter Sargent president of R3 says: "Debt plans can play an important role in offering a manageable solution to individuals who are able to pay back their debts. However, the sheer length of some plans indicates that the amount of debt these individuals have is too large – these inappropriately lengthy plans people become slaves to their debts."

Having to bow down to debt for years is not the answer – it might mean a decade of no credit and no hope. But by consolidating your debts into one manageable secured loan you could avoid the years of pain. One low payment means room to pay off debt rather than just manage it and it means a better financial life.

Talk to a mortgage adviser about avoiding debt slavery and instead be free of your debt burdens with a sensible, manageable secured loan.

SOURCE: R3, 05/03/10

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A consumer debt charity has warned that more and more Brits are falling into insolvency because they cannot handle their secured and unsecured debts.

The Consumer Credit Counselling Service recommended insolvency to 39,663 of its clients – that's an annual increase of 93% in overall insolvency recommendations.

More than 20,000 people came to the charity and were recommended bankruptcy, nearly 12,000 were recommended Individual Voluntary Agreements and more than 7,000 offered debt relief orders in the last 12 months.

Delroy Corinaldi, CCCS director of external affairs says: "Although there has recently been positive signs in the economy, our figures highlight the high numbers of people with unmanageable debt, for which insolvency is the most appropriate solution."

There is no doubt that those people who came to the CCCS were in need of an insolvency, but it needn't get that far. Insolvencies are literally the last throw of the dice and are very difficult to come back from. Between that first red letter through the letter box and insolvency there are a world of options to consider.

If you are struggling with your secured and unsecured debts, talk to a mortgage adviser about those options before you run out of them.

SOURCE: CCCS, 04/02/10

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You may be able to handle all your secured debts without any risk of defaulting but would your family be able to cope with the debt responsibility without your income?

The average household with dependent children has £91,648 still outstanding on their mortgage now compared to £88,500 last year, according to Scottish Widows. And when it comes to short term debt, the average household with dependent children has carried over £8,653 over the last three months.

These debts may not be huge and are certainly manageable with a good income, but what happens if you get sick for a long time? Or what happens if you are involved in an accident, need surgery or have to care for a sick family member? What happens if you die? Could your family take on the long and short term debt alone?

Millions of households are leaving themselves at risk of being unable to survive financially if one of the bread winners become unable to work – but Scottish Widows says 62% of Brits have not protected themselves for the long term should the worst happen and they lose their household's main income.

Clive Allison, protection director at Scottish Widows, says: "Nearly half of families with dependent children now rely on two incomes to maintain a decent standard of living, and as our stats show, this isn't likely to ease off any time soon. For many families, sacrificing half their income when they have children is a luxury they just can't afford.

"People are leaving themselves exposed to a lack of income should anything happen to the main breadwinner, and large personal debt to repay on top of this could make things even more difficult. Families need to make sure they protect themselves financially so if they do get into difficulties they have the vital back up in place to look after their families and loved ones."

SOURCE: Scottish Widows, 18/01/10

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You have probably spent the last year doing all you can to help solve your secured loan problems – but if you want to be successful you need to make another New Year's resolution to once again work hard at saving and clearing debt.

But too many people think their problems will just go away now they have spent a year being financially sensible – Gocompare.com says that while money matters topped 60% of peoples' resolution lists last year, only 37% will resolve to sort out their finances and pay off debts in 2010.

Lee Griffin, business development director at Gocompare.com says: "The credit crunch ensured that everyone was thinking about money this time last year. It gave people a jolt and got us thinking about how we could save money. I doubt very much that everybody has got their finances in order, so resolving to cut outgoings and shop around more are still likely to be good resolutions this year too."

So people who have debt problems need to persevere and make some more promises to themselves for the next 12 months. New resolutions could include saving money on outgoings, getting out of debt or reducing loan and credit card costs, putting more into a savings account or even shopping around for the best financial products like insurance and mortgages.

The key to getting out of debt is perseverance. But we all know reducing debt is tough, so get some help in making your resolutions stick. Talk to a professional financial adviser about putting together a new 2010 plan of action – a good plan alongside some professional advice can go a long way in making sure your 2010 financial resolutions work.

SOURCE: Gocompare.com, 30/12/09

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Secured loan lending is in the doldrums right now – but it is still alive and it is still an option for some people who need the help of a sensible, secured finance option.

New figures from the Finance & Leasing Association show consumer credit market remains under pressure – it says secured lending markets fell in the middle of 2009 by 84%, compared with Q2 2008.

And while, thankfully, risky unsecured fell too, store instalment credit continued to grow, with new business up by 5% in June and 1% in the second quarter of 2009. This is worrying – store cards can be even less competitive than credit cards and personal loans and can cause even more debt problems. The only sensible loan that homeowners with debt problems should ever consider is a secured loan. Using your home's equity, it means the rates are lower, the penalties are less severe and the debt is more manageable, with some professional guidance.

Geraldine Kilkelly, head of research and chief economist of the FLA says: "In the last six months we have seen new credit levels continue to fall."

Talk to your mortgage adviser if you are struggling with debts. There are still some secured loan options out there for a chosen few – sensible options that will help you get on top of debts and move out of debt.

SOURCE: FLA, 24/08/09

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Eighty per cent of Britain will spend less on Christmas than they did last year, as debt and mortgage problems swamp the nation.

According to the Institute of Customer Services, women will be guarding their purse strings more tightly than men, but all age groups, regions, incomes and professions in the survey have shown their concern over the economic downturn.

However 20% said they would spend more during the festive season than a year ago, in the new Christmas spending poll of almost 12,000 people.

Although it’s good to see people are putting their debt priorities first, many of the 20% who have decided not to curb spending in the run up to the holidays may risk extending their debts with frivolous buying.

David Parsons, ICS chief executive, says: “Christmas is the busiest time of the year for many, so this trend will make for worrying reading.”

If you are considering unsecured debt as a means to fund shopping for Christmas, think again. Although there is a lot of pressure to spend at Christmas, especially for those with children, unsecured debt is bad news and must always be avoided.

Credit cards, store cards and personal loans may help in the run up to December 25, but once 2009 comes round you might find yourself unable to manage mortgage repayments, debt repayments and rising interest.

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

Over half of Britons feel financial problems are the single greatest issue facing the nation today, ahead of terrorism.

New research commissioned by AXA found that financial fear has risen by a fifth in just a few months.

Twelve months ago Britons felt the most pressing issues facing the nation were immigration and terrorism. But now, only a quarter of Britons ranked terrorism as the greatest problem facing the nation in 2008.

Also, personal safety and financial concerns have replaced environmental and security fears: AXA says financial fears are spreading out to general fears of safety.

But the most worrying statistic is that over the last 12 months just a quarter of Britons has sought financial advice, according to the insurer.

Steve Folkard of AXA says: "Financial concerns can easily monopolise every waking thought, at home and at work, causing serious psychological problems. Money worries have a big impact on personal and professional relationships and in extreme cases they could even result in divorce and slower career progression, as people take out these frustrations on those around them."

The simple cure to the fears is just what people have not sought – advice. Professional financial advice will allay worries and allow people to see that finances needn’t be feared.

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

If you are struggling to make ends meet, there has always been the option to sell up and find a more affordable property, using the proceeds to clear debt and start afresh.

But not anymore: Rightmove.co.uk has found that increasingly desperate sellers are slashing asking prices for homes in England and Wales by 2.9% in an attempt to sell their home at all – and on an average home of £180,000 that could be as much as a £5000 cut.

The property website said sellers are recognising the need for more drastic action as the market slows even more severely. This is bad news for anyone who hoped to use their home’s equity as a means of improving their situation.

There is, of course, always another way. Using a secured loan to turn your equity into cash means you do not need to move. You do not need to lose long-earned equity and you do not need to suffer one more sleepless night.

Talking to an adviser will give you a better idea of what you need to do to unlock capital. But it will not mean losing money needlessly, and it certainly will not mean losing the home that you love.

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

Many homeowners have seen the value of their home increase dramatically over the last ten years, so it’s a great time to move. But at the same time moving has never been so expensive – buyers now need to put down nearly £28,000 just to move*. So when it comes to moving home you may feel like it’s too much – this is where a secured loan for home owner can help. With this, you can use the equity in your home to pay off debts or get to grips with any unexpected expenses that come with moving home. A secured loan for home owner allows you to use the value of your home to find that money to move to that dream property.

Read more about getting a Secured Loan for Homeowner