Credit can become harmful when high interest rates and strict repayment conditions make it difficult for the borrower to repay on time. This leads to increasing debt, pressure from lenders and a painful financial situation that becomes very hard to escape.
‘Credit pushes the borrower into situation from which recovery is very painful’. Support the statement.
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Credit can create a painful situation for borrowers when repayment becomes difficult:
Thus, costly or poorly managed credit makes recovery extremely hard for borrowers.