People are desperately running around trying to get more credit in order to keep food on their plates and the lights on but increasingly credit providers are having to turn them away because they won’t be able to pay off more debt.
When you apply for credit, the credit provider has to check all your existing debts and your monthly need and calculate a bit of an emergency cushion and only if you can then afford to pay back what you are applying for can they give you the credit.
Recently banks and other registered credit providers have been turning people away even though they would love to offer more credit to more people.
Stats show that around 70% of all credit applications are being turned down because consumers can’t actually afford more debt.
‘around 70% of all credit applications are being turned down because consumers can’t actually afford more debt’
What is worrying is that these consumers may foolishly turn to unregistered loan shark instead of getting help with their existing debt through processes like debt review.
If you are dealing with severe debt stress, please talk to an NCR registered Debt Counsellor about how you can pay off your debts through debt review instead of chasing after more and more debt.
