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The advantages and
disadvantages of using credit cards
Some of the
Advantages are:
- If
you use credit cards wisely, they can help you build a good credit
history so you can buy things like a car or home later.
- If you really
need something, you can get it right away instead of having to save you
money for a long time.
- You can
pay for big items over time.
- You don't have
to carry large amounts of cash with you.
Some of the
disadvantages are:
- It
is easy to spend more than you planned and buy things you don't really
need or want.
- You will
pay more with credit than with cash because you must add interest and
other credit card costs to the price of the item.
- There are often hidden
costs and charges with credit cards. This is why it is important
to read the small print on your credit card agreement.
- You must use some of you
income each month to make payments on something you may have bought
months ago.
- If you lose your
job, you might not be able to make the payments and get into serious
debt.
- If you forget to make
payments, you credit rating will be damaged.
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