Motley Fool: Consumers have appetite for credit

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Motley Fool: Consumers have appetite for credit

Mon 28th Sep 2009

The Motley Fool has noted that consumers have an appetite for credit after seeing specialist loan company S&U report plenty of success despite the current economic climate.

David Kuo, director of the financial advice website, made his comments following the news that S&U has seen an increase in demand for store cards that charge up to 399 per cent interest.

He noted that these types of specialist companies are benefiting from the lack of lending by high street banks, because people still want credit.

Mr Kuo added: "However, forking out for expensive loans to solve short-term needs could cause long-term problems, not only for the anxious consumers but for the economy, too."

This situation, where people are happy to pay such high levels of interest, he warned, showed the desperation among borrowers.

Last week, the Sunday Times reported on how borrowers are now having to negotiate new clauses on store cards, designed for the retailer to increase their profits.

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