0800 097 3653
Go for unsecured loans to pay off debts
London, Tuesday, 31st January 2007
There is ostensibly not much of a connection between the unsecured debt costs (e.g. credit card borrowing) and common interest rates. However, uSwitch (www.uswitch.com), the price comparison website, has revealed that the principal overdraft and credit card rates went up by more than a full percentage point in 2006. Chris Tapp, of Credit Action (www.creditaction.org.uk), the debt charity, believes that the first month of the New Year is the time when people have the most money worries.
While some may be tempted to go for secured loans in such circumstances, Mr. Tapp advises otherwise. He states: "In most cases you pay over a longer period and it costs more."
The best solution for these kinds of problems is to tackle them without procrastinating. Interest on interest only makes the situation worse.
uSwitch points out that constant switching may bring about large balance-transfer fees, so a safer bet could just be a life-of-balance card, with a lower rate for as long as there is pending balance. Another choice is to convert the debts into unsecured personal loans, where rates begin at 5.7 per cent. This forces the borrower to be more disciplined towards repayments.
Other Related News:
London, Tuesday, 31st January 2007
There is ostensibly not much of a connection between the unsecured debt costs (e.g. credit card borrowing) and common interest rates. However, uSwitch (www.uswitch.com), the price comparison website, has revealed that the principal overdraft and credit card rates went up by more than a full percentage point in 2006. Chris Tapp, of Credit Action (www.creditaction.org.uk), the debt charity, believes that the first month of the New Year is the time when people have the most money worries.
While some may be tempted to go for secured loans in such circumstances, Mr. Tapp advises otherwise. He states: "In most cases you pay over a longer period and it costs more."
The best solution for these kinds of problems is to tackle them without procrastinating. Interest on interest only makes the situation worse.
uSwitch points out that constant switching may bring about large balance-transfer fees, so a safer bet could just be a life-of-balance card, with a lower rate for as long as there is pending balance. Another choice is to convert the debts into unsecured personal loans, where rates begin at 5.7 per cent. This forces the borrower to be more disciplined towards repayments.
Other Related News:
