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Those who are wise know how to plan their finances and avoid getting into such debt traps. You should get into the healthy habit of spending only on necessities and not fuel your wants which are unlimited. Remember the money is ultimately going from your savings and earnings. You should be aware that the credit card companies and the commercial banks make their money by charging you very high rate of interest on your borrowings. They exploit your weakness and see an opportunity to make money by lending instant money to you.


Yes in the current economic scenario, one cannot live without the loans. However you should exercise caution while approaching loans. First and foremost it is important to inculcate the habit of buying things only against your needs and avoid spending on wants. Secondly loans should be availed only for buying a home or real estate asset and for buying a vehicle.


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To run day to day operations like buying raw material, paying salaries to staff Wholesale Jerseys Cheap , selling expenses etc the business requires continues cash flow in the form of working capital.Banks provide working capital loans to the business firms in order to meet these requirements. Such borrowing is called Cash Credit Account or Over Draft account in banking terminology. The bank fixes a limit for the firm鈥檚 borrowing based on its work in progress inventory and pipeline sales.


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