What is the most dangerous type of credit?

Answer 1

The most dangerous type of credit is often considered to be payday loans. These loans typically come with extremely high interest rates and short repayment terms, which can trap borrowers in a cycle of debt. The ease of access and lack of credit checks may encourage individuals to borrow more than they can afford to repay, leading to financial instability. Additionally, the aggressive collection practices associated with payday loans can exacerbate the borrower's financial difficulties.