Debt Settlement
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    What Can You Afford?
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How much credit can you afford?
If the lender is unable to collect on a loan, whether secured or unsecured, there are consequences for the borrower. Defaulting on a loan is a serious business, and can impact your credit rating, resulting in an inability to take out new loans. In more serious cases, it may lead to legal action.
That's why the first step in using credit wisely is figuring out how much credit you can afford to take on. You need to take a long, hard look at your current and future financial situation before you take on any new debt. As part of this analysis, you should look at your debt ratio and set a realistic budget for dent repayment.