There are several things that can happen to a handbrake cable which would mean that you must replace it:-
Handbrake cables can stretch, which means that you have to pull the lever up very high to fully apply the brake. Eventually the cable will stretch so much that it is not possible to put the brake on fully.
The cable can fray so that it is at risk of snapping. This is usually only noticable when you look closely at it from under the car - at an MOT test.
The cable can become rusty and stick in its sheath so that it's not possible to put the brake on properly. Sometimes this can make it impossible to release the brake.
Replacing the handbrake cable is not difficult, but it will take about an hour and it will be a very dirty job. Because it's under the car you will certainly find that most of the screws, nuts and fittings are covered in mud and rust.
Driving along with the handbrake lever fully up will mean that the rear brakes are ON and so they will overheat as you drive. This will damage the brakes in a very dangerous and expensive way. The brake pads will wear out and may even catch fire. The brake discs will get red hot and you could also destroy the rear brake cylinders. It will also mean that you are risking damaging the car's clutch too.
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