A line of credit is easy to understand and a relatively good way to borrow money. Generally with lines of credit, there are no fixed terms or set payments, so you can keep a balance on your line of credit indefinitely, explains Doug Hoyes, licensed insolvency trustee for debt relief experts Hoyes, Michalos & Associates. Lines of credit exist as easy means of cash flow, so you borrow and pay, borrow and pay. Its very convenient and very attractive for borrowers.
Of course, this doesnt eliminate debt. If you have credit card balances you cant pay off from month to month, and you pay off those balances with your line of credit, you still have the same amount of debt. You may reduce the interest, but not the actual debt.
And because those cred…
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