The ‘Alternative Credit Sector’ grew out of the forest of modern personal finance like a fungus that sucks out the remaining life from weaker and dying species. Many as poverty lenders who specialized in poor people who could not qualify for credit from mainstream banking or financial institutions were labeled by the early agents of the contemporary credit society. Harsh and often unconscionable terms for repayment accompanied these loans, with the most notable condition being usurious interest rates – so high and excessive that the loan recipients were assured to remain poor while having their suffering intensified and extended well into the future.
Credit Card Debt is the most common form of unsecured debt in Canada. During the past decade Canadian and US credit card companies have been very successful in targeting low income families as their main client. In an effort to cope with a weaker economy many families tend to pay with a credit card for basic necessities thus adding more to their Credit Card Debt. This makes credit card companies really prosper as the less money you pay them each month, the more interest they receive. And the larger the Credit Card Debt gets the sooner families are not able to make even minimum payments creating a very serious problem.