A friend told me that he ran up a credit card bill of almost $10,000. That's a lot of money, obviously, and he said that he cannot settle the bill in one lump sum. This means that he has to carry forward some balance every month and pay interest on it. That's not the smartest thing to do,of course, but he said that he hasn't a choice. What is even more worrisome is that he just purchased a car six months ago and still has 4.5 years of installment on the car. Moreover, he will be leaving his job at the end of the month without securing a new job yet.
Actually, what this friend is facing is not something alien. Many people are in his shoes. Financial advisers say that it's foolish to carry a credit balance but financial institutions love people like this. In fact, if you take out a loan with them, they would penalize you should you wish to repay the loan sooner than the term of the loan!
Actually, what this friend is facing is not something alien. Many people are in his shoes. Financial advisers say that it's foolish to carry a credit balance but financial institutions love people like this. In fact, if you take out a loan with them, they would penalize you should you wish to repay the loan sooner than the term of the loan!
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