Pros and Cons of Using Credit
What can credit offer you?
-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.
-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.
-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.
Example: You reduce the amount of your future income and have less money to spend later.
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.
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.