Credit cards are one of the most variable methods of finance, with an interest rates from 0% to over 30%, with differing fees and too many special terms and conditions to mention. Unlike a personal loan, there is no specified time to repay the money, so what is paid off can easily be spent again.
How much can a credit card cost a person?
What is interesting about credit cards is that the lenders often give a person a higher credit card limit than they would give in a personal loan and it is also possible that a person, that is considered to be risky for a personal loan, to be given a credit card. So, in fact lenders gamble their money on that person not being able to pay off the credit limit quickly and the longer it takes to pay off the credit limit the more money they make.
Even by paying the minimum payments that the bank requires every month, that is still a very small payment to reduce the amount that has been borrowed.
{ 0 comments… add one now }
Leave a Comment