Disadvantages of Credit (1262)

Only you know how you want to spend your money. Your decision to use credit should be based not only on your needs and wants, but also on your financial ability to meet payments. It is a good idea to analyze your financial situation in terms of the money you earn and the expenses you must meet.

As a skillful consumer, consider the disadvantages of using credit in your particular financial situation:

- Credit almost always costs money (e.g., finance charges).

- You may overspend.

- You may be discouraged from comparison shopping.

- Credit contracts may be difficult to understand.

- Overuse leads to a poor credit rating.

- Your future income is tied up repaying previous debts.

Being aware of the disadvantages of using credit can make you a better consumer.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

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