Consumer confidence has greatly improved since the dark days during the financial crisis in 2008. Since that time a lot of regulation has been placed on the banks lending practises but have no fear the banks have a plan. They have turned to a less regulated aspect of lending which is through credit cards. It proves to be very advantageous for the banks as they are able to increase the profit margins through higher interest rates and the borrower will have some revolving credit that they can use. The banks have increased their credit card products to include plenty of products that are aimed at subprime borrowers. Quite often the banks are issuing credit cards that are secured by collateral.
None of this would prove to be a problem if more people could make sound financial decisions and used credit more appropriately. You can take on good credit and you can take on bad credit. Unfortunately, most people don’t know the difference and just end up acting like a kid in a candy store when you give them a credit card!
So as consumer confidence continues to improve they will be inclined to take on more and more debt. Of course the banks will be right there to profit from it all.
Source: Are U.S. Banks becoming aggressive lending again