Credit can be good when used wisely. It can improve a family’s level of living. For example, most people use credit to buy their homes. The main reason most people use credit is that they do not have the cash to pay the total cost of an item or service at one time. Another reason is that it may be easier to pay for an item through regular installment payments.
Using credit has both advantages and disadvantages. Read each statement below. Decide if the statement describes an advantage or disadvantage of using credit.