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The fees and interest rates associated with these loans can be very high, and you may end up paying much more than you borrowed. This can be especially beneficial for those who have irregular income or who are not sure how much money they will need in the in future.

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This can make a revolving credit line a more cost-effective option than a traditional loan, where the bad borrower pays interest on the entire loan amount regardless of whether they use all of the money. Credit counselors can help you develop a budget, negotiate with creditors, and create a plan to improve your credit.