When a consumer applies for credit they are asked to provide information about their income and expenses. This helps credit providers stick to the law and only give credit to people who realistically can repay their debts. Credit given to consumers who cannot afford to repay is called “reckless” and can be written off by a court.
Some desperate consumers who cannot actually afford credit turn to illegal means to get access as is shown in this video.
Later, of course, these same consumers will struggle to repay the debt and will fall into the collections process. This means lawyers and court judgments and lots of stress. If you think you need another loan to help you then rather talk to your local Debt Counsellor about getting rid of your debts. Don’t break the law and don’t use new credit to repay existing credit.
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