Pros and Cons of Using Credit

What can credit offer you?

PROS

Advantage #1

-The use of goods and services as you pay for them.

Example: You can wear a new dress or drive a new car while pay for it in small payments.

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Advantage #2

-You have the opportunity of buying costly items that you could not be able to buy with cash.

Example: You might find it very difficult to save up to buy a car, a vacation, education or a big medical bill.


Advantage #3

-You have a source of cash doe emergency or unexpected expenses.

Example: Even if you are a huge saver, you could get thrown off by an unexpected event. Credit can be your temporary help.

CONS

Disadvantage #1

-The reduction of future income

Example: You reduce the amount of your future income and have less money to spend later.

Disadvantage #2

-Expense

Example: Using credit usually cost money. The more time you take to pay back the money, the more you will pay in finances. This ultimately reduces your money left over.

Disadvantage #3

-Temptation

Example: You might spend more than you can afford and create huge debt. This is very bad because it will take you a long time to pay this back.

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Is credit for you? Or nah?

Finding out if credit is for you is a very difficult decision to make. You have to be extremely responsible if you want to be able to use it as an advantage. Be careful and happy shopping!