Credit cards are a type of funding that people apply for, then misuse with disastrous results mainly because they are so easy to get. A borrower can apply online, through the mail, and over the telephone. There are millions of companies vying for the business of people who need an unsecured loan. But along with credit cards comes the associated debt if the funds are not used wisely. This is a major problem in America, and the situation is getting worse daily. The problem does not lie with the lenders but with the consumer. If used wisely, unsecured loans can help with business or personal transactions, but should be cautiously used to fund emergencies. The difference is in the attitude of the spender.
There are good reasons to use these plans. For example, if person wants to track expenditures for a business or for personal reasons, these loans offer detailed tracking. Or if a person doesn't want to carry large amounts of cash, he can use these types of loans. If a person must use a credit card, he should pay off the balance as soon as he receives the bill. They can carry very high interest rates and may include large fees and huge late payment charges. If the borrower only pays the minimum amount each month, the repayment period can stretch into years and cost thousands in interest charges.
source:http://www.christianet.com
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