There are many times that a young man or women start their first job
. The dreams of independence and creating your own special place in the world is what every child dreams of while completing their studies. Buying their own cars, buying their own homes and slowly creating a place that they can call their own. A dream which every young man and women see and focus all their efforts to accomplish. A symbol of their abilities and capabilities is what this is.
But for all this and in an expensive country like this things can prove to be a little tricky when all they depend on are their earnings. Thus loans are taken and this activity is performed by every one thus creating a lot of debt in the market. Not every one is a financial expert and not every one uses all these funds in a wise and intelligent manner. This leads to defaults and late payments and eventually creation of bed debts for the bank. And this affects the loan holder, with his credit history being maligned. Loans for individuals who have bad credit history is very difficult to obtain.
Thus comes the role bad credit loans which are provided to individuals who have a history of not paying their loans on time or not paying them at all. Thus this category of loans defies the whole concept of judging the credit ratings of the individual. Bankrupt individuals and criminals among a few others are not eligible for such kind of loans. The sole purpose of these types of loans were created to reduce the influence of the parallel mafia controlled financial lenders in the market. The banks have to write off debts worth millions of pounds every year because of this but it helps reduce the black money in circulation in the market.
It is a wonderful concept but a costly one for the Government but it provides a legitimate source of credit for this category of people and helps reduce the influence of mafia in the market.