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    t (like their homes) that will increase in value over time, start a business, or obtain some other financially beneficial asset. Credit used in this way can help households improve their overall worth and comfort, and is a wise use of credit, as long as the hom
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    Numerous sources online have discussed the issue of credit and how it can help push homeowners over the edge into foreclosure, and how it can continue to have financially destructive effects even after the mortgage has gone into default. The point of this article will be to look a little more at credit in general and how it can both hurt and help consumers.

    In the vast majority of situations in working with homeowners in foreclosure, credit only helps these homeowners lose control of their finances and borrow too much today based on an uncertain or negative future. Once that uncertain future entails a financial hardship, credit cards go into default, collection agencies and attorneys are hired, and homeowners have to search out some trustworthy source of foreclosure advice. And this is all the result of them borrowing money just to finance the basic necessities.

    Granted, the simple act of obtaining and using credit is not a problem. Borrowing money can, at certain strategic times, help consumers purchase an investment (like their homes) that will increase in value over time, start a business, or obtain some other financially beneficial asset. Credit used in this way can help households improve their overall worth and comfort, and is a wise use of credit, as long as the hom

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    le will be to look a little more at credit in general and how it can both hurt and help consumers.

    In the vast majority of situations in working with homeowners in foreclosure, credit only helps these homeowners lose control of their finances and borrow too much today based on an uncertain or negative future. Once that uncertain future entails a financial hardship, credit cards go into default, collection agencies and attorneys are hired, and homeowners have to search out some trustworthy source of foreclosure advice. And this is all the result of them borrowing money just to finance the basic necessities.

    Granted, the simple act of obtaining and using credit is not a problem. Borrowing money can, at certain strategic times, help consumers purchase an investment (like their homes) that will increase in value over time, start a business, or obtain some other financially beneficial asset. Credit used in this way can help households improve their overall worth and comfort, and is a wise use of credit, as long as the hom

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    oo much today based on an uncertain or negative future. Once that uncertain future entails a financial hardship, credit cards go into default, collection agencies and attorneys are hired, and homeowners have to search out some trustworthy source of foreclosure advice. And this is all the result of them borrowing money just to finance the basic necessities.

    Granted, the simple act of obtaining and using credit is not a problem. Borrowing money can, at certain strategic times, help consumers purchase an investment (like their homes) that will increase in value over time, start a business, or obtain some other financially beneficial asset. Credit used in this way can help households improve their overall worth and comfort, and is a wise use of credit, as long as the hom

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    advice. And this is all the result of them borrowing money just to finance the basic necessities.

    Granted, the simple act of obtaining and using credit is not a problem. Borrowing money can, at certain strategic times, help consumers purchase an investment (like their homes) that will increase in value over time, start a business, or obtain some other financially beneficial asset. Credit used in this way can help households improve their overall worth and comfort, and is a wise use of credit, as long as the hom

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    t (like their homes) that will increase in value over time, start a business, or obtain some other financially beneficial asset. Credit used in this way can help households improve their overall worth and comfort, and is a wise use of credit, as long as the homeowners are comfortable in their ability to meet the obligation of repaying the debt.

    The problem is when homeowners begin using credit to finance basic necessities of their lives and to continue an unsustainable life of consumption for the sake of a subjective, meaningless, unattainable goal, such as "looking good," "keeping up with the neighbors," or "because we can." In these cases, the borrowing can spiral out of control and homeowners can find themselves throwing all of their money away at the interest charges on their various credit lines. Especially when homeowners are borrowing money just to eat, keep a roof over their heads, and keep the lights on, any financial hardship will probably end up in numerous missed payments on any of their open credit cards or mortgage.

    Again, homeowners have very little or no protection when they begin to fall behind on their bills. It is very common (almost universal) for credit card companies to raise the interest rates very high when consumers miss a payment, and some even pr

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