As per a latest report people are going for more mortgage than before and are in a better position to reduce their debt when compared with unsecured loans. On the other hand borrowings on credit cards and personal loans have witnessed a slowdown which is even lower when compared to the rate of inflation.
People holding mortgage have been able to reduce their unsecured borrowings by around three percent when compared with those borrowing through credit cards and loans.
It’s a bad news for the credit companies and they are themselves to be blamed since they tend to charge such high rates of interest that it tends to drive off most of the people and hence is causing a lot of revenue loss to these companies. If they would like to remain competitive then these companies should bring their rates in sync with the market or otherwise face the music.
Via inform
