Sub-prime market is blossoming, thanks to growing element of desperation among the consumers who have switched to credit card products in the wake of insufficiency of right kind of financial instruments. However, these products (referring to credit cards here) available at exorbitant interest rates (as high as 60 percent) are making life more difficult for people already in distress.
Here, in such times, providers’ promotion policy have been purposely aimed to convince people having bad credit history or for those whose loan pleas have already been rejected by high street banks and other prominent banking/lending entities.
Interestingly, people are opting for credit cards despite being in knowledge of the unreasonable interest rates and additional charges & fees, they levy on users. But they don’t seem to have any other option. Reason: Presence of the short term loan product in the UK lending industry known as payday loans. However, ironically, lenders dealing in payday loan products have failed to capitalise the surging demand for it in the right way. Obviously, the next question that comes in mind is WHY it is so? The answer to this query is very clear yet, is baffling at the same time.