As per a report by a consumer organization young adults between the age of 18 and 34 years are at a high risk of facing serious debt issues.
On one side the homeowners are coming out of debts because of the low interest rates for the first time in the past 17 years. However, young adults do not usually take decisions for buying homes; there are other factors that are leading them to bad debts.
As per the findings, 1 out of 3 people under the age of 34 has failed to repay the bills in the past one year. 29% of the young adults admitted of having credit problems as compared to 18% of all the age groups and 23% of people with long-term illness and disabilities.
A major reason why youngsters fall in debts is because they most of the time choose short-term loans as they do not want to keep long repayment commitments. The lenders of such loans take the advantage and charge interest rate that is equal to 2,500% a year. It is also been observed that certain legal lenders charge a higher amount of interest rate when compared to the illegal lenders. The government is taking steps and planning to implement a cap on interest rates to avoid debt problems. Tighter and tougher norms will govern short-term lending.
Many times the victims of exorbitantly high interest rates are not aware of what they are getting into. Once they fall in the debt trap, they realize their mistake and then it becomes impossible for them to come out of it.
Cash loans are quick means to get some quick cash loans to pay an urgent and unexpected bill, or control of your finances till next payday. While applying for cash loans check the interest rates.
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