Credit has both advantages and disadvantages. If you use credit wisely you will be able to make the most of the advantages and avoid many of the disadvantages.
Advantages
- Ability to buy items immediately
- Don't have to carry cash
- Creates a record of purchases
- More convenient than writing cheques
- Consolidates bills into one payment
Disadvantages
- Higher cost of items (interest and finance charges)
- May include additional fees
- Financial difficulties may arise if you lose track of how much you spend each month
- Provides the avenue for increased impulse buying