The more funds a person has, the less he needs to borrow and the bigger sucker he has to lend to someone else. And in this way, even those who have little money usually borrow and then have less money, but those who have a lot of money, they give that money to others and get back their credit interest.
Credit fouls begin when a person borrows too much money
And is no longer able to repay that money with these monthly payments. When monthly payments make up more than half of your monthly budget then you have actually climbed to the very end of the bankruptcy because you only have to live with half of your income and eating, paying for housing, moving around and not talking about clothes is definitely part of this life, entertainment and various extras such as television, internet and phone.
If you’ve got to borrow so much money that you just can’t afford these monthly payments, you have to start looking for ways to get out of this situation, and usually the best way is just bankruptcy, or insolvency or a long and long long hard cut of your spending and credit.
Credit commitments allow people to get money that is not available to them at the moment and therefore they are so tempting, but when these credits start to be repaid, different problems arise.
Of course, credit can be a response to a variety of situations when you are in a really difficult situation, but for the most part, the loans give us additional risks and the longer you have the debt, the greater your risk that you will not be able to repay it.
If you borrow money to survive because you lost your job
What, for example, will happen if you borrow money to survive because you lost your job, but after a few months you will have another misfortune and you will even need more money to prevent this misfortune? In this situation, you will probably not be able to borrow any more and because all the money will go into solving this problem, you will not even have the means to pay your monthly loan payments. I do not know what you think about this, but I think we are all too big debt and sooner or later they will all have to pay back.