Everyone uses credit, right? Nether good or bad we all rely on that little safety net, sometimes not knowing when and if we can pay it back. Necessity, a word, that for all of us has a different meaning. Here are some facts I found (I implore you to research further) about credit use.
Excessive use of credit is cited as a major cause of non-business bankruptcy, second only to unemployment.
About 30% of consumers use their credit card as their main means of buying Christmas goodies, 70% do not say to buy Christmas gifts and 86% of consumers do their Christmas shopping during December. (Rough way to start the year!)
In the last 10 years or so, a new alternative to credit cards, payday loans, have also emerged. These loans carry a high interest rate and other costs. Should be avoided wherever possible.
According to Wikipedia, the payday loan industry in the UK generated roughly $90m in annual revenue-accounting for more than 20% of total lending by consumers!
Another market that has seen rapid development of the payday loan offerings is Sweden, where the payday loan generates around roughly $26m annually.
Check out the blog on Monday June 6, 2016, for Mortgage News!