Almost half of borrowers (45%) get into new debts to service existing ones, a study by the International Confederation of Consumer Societies (ConfOP) showed. That is, people with a high debt load can no longer service their existing debts on their own, without borrowed funds, which indicates not only a high level of debt load of citizens, but also, in fact, their pre-default state. Denial of a new loan can lead to a situation where people cannot pay their debts.
Interestingly, this disturbing answer has become the absolute leader in the question of the purpose of the loan, well ahead of other options. So, in the second place in the ConfOP survey were loans for treatment and repairs (13% of respondents each). 10% of the responses were for loans for education and the purchase of household appliances. Another 8% of people borrow from banks to travel and only 1% to buy a car (the low result in this point can be explained by the fact that people usually use a mortgage type at a lower rate to buy a car).
Read more in the exclusive Izvestia article:
Gone for broke: about half of borrowers take out loans to service debts
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
