According to Equifax Canada, the number of consumers who can not pay their credit card bills outstanding is increasing rapidly (CBC News). With banks constantly banging doors in the faces of consumers, many people find credit cards seems to be the answer to money problems. Consumers Canadians are constantly using credit cards to pay for car repairs, home repairs, and even everyday items. The problem of credit card debt is that this type of debt is very similar to the quicksand for many consumers.
In the past, most Canadians do not had any type of credit card debt, but this is changing due to the current economic situation. While banks are cutting rates, it rarely trickles down to the average consumer that is desperate for a helping hand in the form of a loan. In fact, during this year "… there was a 7.3 per cent increase in the crime rate nationwide consumer … (CBC News). "This number has left many Canadians with a massive amount of debt that seems to be endless.
While some consumers are desperately trying to dig their way out of credit card debt, other consumers are beginning to realize that there are some alternatives to the use of high interest rate credit cards. Those who need the loans are beginning to look into alternative loan options such as private lenders. Several private lenders are still offering great rates for most consumers – Even those without perfect credit histories. In almost all cases, this is a much better option than "excessive spending" any credit card.
In addition to offering great rates to consumers, these lenders also offer an easy payment plan. Unlike the constant use of credit cards, once a private loan can be paid simply. Most private lenders work with consumers to reach the repayment terms that both parties can agree. After a loan has been paid in full, the borrower is free to any additional payment.
Canada's consumer debt is over it has ever been before. Although most consumers do not wish to use their credit cards as a form of loan, often seems like the only option available. As traditional lenders continually deny loan applications, many consumers have begun to turn to private lenders. While the Canadian economy still struggling to return to their feet, private lenders are as solid as they ever were. This is great news for consumers who want to get a loan, but not want to rely on credit cards high interest to survive.
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