Borrowing money is a dangerous practice whenever any difficulty in the

1.	Borrowing money is a dangerous practice whenever any difficulty in the repayment is expected. That is, people ordinarily think of borrowing when their spending exceeds their income, or when they wish to spend more than they can earn. This is especially true for poor people. In such cases, by means of borrowing, we are enabled more easily to break the usefulness of common sense which tells us never to spend more than we earn. Anyone who lends money under these circumstances hardly sees any definite chances of repayment. People should restrict their expenses to the most necessary things in life, such as shelter, food and clothes which would be much better than taking up the burden of a debt that you do not know how to pay
Answer» Answer: I studied this in last year.... But those on the lowest incomes are much less likely to borrow on credit cards or get personal loans for new cars. Instead, they turn to alternative lenders such as payday lenders, rent-to-own and home collected or doorstep lenders. And often this is to pay for basic items such as SCHOOL uniforms, nappies, white GOODS and sometimes even food, and to tide them over between jobs. Or when their wages are lower than expected due to zero hour contracts and casual work. These alternative lenders typically charge far higher rates of interest than mainstream lenders. For example, in 2016 the charity Church Action on POVERTY highlighted the cost of buying a fridge freezer from BrightHouse, a large weekly payment retailer with shops on many local high streets. The total cost was £1,326, which included the purchase price of £478.33, interest of £658.74 and various warranty and delivery charges. The exact same fridge freezer, bought through Fair For You, a not-for-profit Community Interest Company, would have cost a total of £583.68 (including the purchase price £373.99 and interest £120.38). According to the Financial Conduct Authority, 200,000 PEOPLE took out a rent-to-own product in 2016 and 400,000 had outstanding rent-to-own DEBT at the end of 2016. The home-collected credit market is larger, with 700,000 people taking out a home-collected credit loan in 2016 and 1.6m people with outstanding debt on these products at the end of 2016. if you found this useful please mark me as brainliest...... Explanation:

Borrowing money is a dangerous practice whenever any difficulty in the repayment is expected. That is, people ordinarily think of borrowing when their spending exceeds their income, or when they wish to spend more than they can earn. This is especially true for poor people. In such cases, by means of borrowing, we are enabled more easily to break the usefulness of common sense which tells us never to spend more than we earn. Anyone who lends money under these circumstances hardly sees any definite chances of repayment. People should restrict their expenses to the most necessary things in life, such as shelter, food and clothes which would be much better than taking up the burden of a debt that you do not know how to pay

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I studied this in last year....

But those on the lowest incomes are much less likely to borrow on credit cards or get personal loans for new cars. Instead, they turn to alternative lenders such as payday lenders, rent-to-own and home collected or doorstep lenders. And often this is to pay for basic items such as SCHOOL uniforms, nappies, white GOODS and sometimes even food, and to tide them over between jobs. Or when their wages are lower than expected due to zero hour contracts and casual work.

These alternative lenders typically charge far higher rates of interest than mainstream lenders. For example, in 2016 the charity Church Action on POVERTY highlighted the cost of buying a fridge freezer from BrightHouse, a large weekly payment retailer with shops on many local high streets. The total cost was £1,326, which included the purchase price of £478.33, interest of £658.74 and various warranty and delivery charges. The exact same fridge freezer, bought through Fair For You, a not-for-profit Community Interest Company, would have cost a total of £583.68 (including the purchase price £373.99 and interest £120.38).

According to the Financial Conduct Authority, 200,000 PEOPLE took out a rent-to-own product in 2016 and 400,000 had outstanding rent-to-own DEBT at the end of 2016. The home-collected credit market is larger, with 700,000 people taking out a home-collected credit loan in 2016 and 1.6m people with outstanding debt on these products at the end of 2016.

I studied this in last year....

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