According to the report of New York-based think tank Demos, about one-third of the cardholders bear in excess of 20% interest rates. The report also says that many borrowers also ends up in a “trap” of debt because of their one wrong step.
The author noted that the card issuing companies can change the terms and conditions at will, and that’s why the borrowers are charged high rate of interest and fees with no legal bounds. According to him "As a result, cardholders often borrow money under one set of conditions and end up paying it back under a different set of conditions".
The youth and the lower-income households may be in risk because of the increasing use of credit cards.
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