One Touch Finance Releases Comprehensive Guide on Bad Credit Card Loans as Consumer Debt Hits $1.13 Trillion

April 17, 2025 - With credit card debt soaring to a staggering $1.13 trillion according to the Federal Reserve's latest Consumer Debt Analysis, One Touch Finance has just published a much-needed guide to navigating bad credit card loans in today's rough economic waters.

The eye-opening report shows the subprime credit market has grown by 18% since last year, with more than 30 new fintech companies jumping into the space with products specifically targeting folks struggling with FICO scores under 630.

"Millions of Americans are desperately searching for credit options despite damaged credit histories, but these products often come loaded with hidden costs that can make a tough situation even worse," explains Maria Rosey, certified financial analyst and founder of One Touch Finance. "Our deep-dive analysis reveals that what these products cost goes way beyond the interest rates you see advertised."

Key Findings from the Report:

• Interest rates on bad credit products typically hover around 29.99%, with some pushing right up against the legal maximum of 36% APR
• Annual fees average $95, with some hitting a painful $199
• When you add up all the fees, many consumers are effectively paying real-world APRs exceeding 50%, even though advertised rates stay within legal limits
• A troubling 64% of people seeking debt management help originally got these products during financial emergencies rather than as planned tools to rebuild their credit

The report breaks down the three main flavors of bad credit card loans consumers can find: secured credit cards that require deposits, high-interest unsecured cards with modest credit limits, and credit card/installment loan hybrids.

Alternative Solutions Highlighted

One Touch Finance's guide also points consumers toward several better options to consider before jumping into high-interest credit products:
• Credit union payday alternative loans (PALs) offering up to $2,000 with capped 28% APR
• Income-based repayment plans through creditor hardship programs for existing debt
• Nonprofit credit counseling through trusted organizations
• Community development financial institutions (CDFIs) offering lower-cost products for underserved populations
• Secured personal loans using vehicles or other assets as collateral for lower interest rates
"For those navigating the rough waters of damaged credit, the most important consideration isn't just getting approved-it's finding financial products that help you recover rather than extending your financial distress," Rosey emphasizes.

About One Touch Finance

One Touch Finance (onetouchfinance.com) provides accessible, transparent financial education and analysis. Founded by Maria Rosey, a certified financial analyst with 13 years of experience in personal finance, insurance, and banking, the company is committed to helping consumers make informed financial decisions.

Media Contact:
Maria Rosey
Founder, One Touch Finance
Email: mariarosey@onetouchfinance.com
Website: www.onetouchfinance.com

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About One Touch Finance
One Touch Finance (onetouchfinance.com) provides accessible, transparent financial education and analysis. Founded by Maria Rosey, a certified financial analyst with 13 years of experience in personal finance, insurance, and banking, the company is committed to helping consumers make informed financial decisions.

Media Contact:
Maria Rosey
Founder, One Touch Finance
Email: mariarosey@onetouchfinance.com
Website: www.onetouchfinance.com

This release was published on openPR.