In many cases, the lender will require you to put up your house as security, so you should think carefully before trying to borrow your way out of debt. The gut reaction when receiving a nasty letter from your credit card bill may be to reach for the scissors and cut your credit card in two. But there is a better way of dealing with credit card debt. Give the debt to someone else . Not just anyone else, but a credit card company that offers a lower rate of interest, and therefore lower monthly repayments than your current creditor.
Most issuers offer to transfer existing credit card debts on to their cards.
In particular, look out for card companies making introductory offers to newcomers. Usually these take the form of a discounted interest rate for the first six or 12 months. However, make sure you don't get caught out by the small print, which may mention an annual fee, or a more expensive method of charging interest, such as from the date an item is purchased, rather than from the date the transaction is credited to the account. If your bank manager is giving you similar grief, you can do the same by switching your overdraft to another bank. The range of fees charged on even authorised overdrafts at different banks is enormous, so shop around for the lowest charges.