Credit Pros and Cons信用的利弊.pptVIP

Credit Pros and Cons Unit 1 Lesson 4 Introduction Credit use carries an important responsibility. When used responsibly, credit offers several advantages: the freedom of not having to carry large amounts of cash, the opportunity to establish a good credit history, and the ability to track expenditures. Introduction Credit can also be a helpful tool when used wisely by smart money managers, but it also has some serious disadvantages. Students need to know that credit is not additional income that allows them to buy more. Credit is a loan that allows people to make purchases while postponing payments, thereby enjoying benefits now and paying later. Introduction Also, credit is not free. Extra charges for its use increase the cost of items that are purchased. Before making decisions about the use of credit, students should become well informed about advantages and disadvantages. Using Credit – A Big Decision The decision to purchase an item using credit – borrowing rather than saving and paying cash – is to be taken seriously. How badly do you need the desired item? Is it something that you can live without, or is it a need you must satisfy immediately? Saving requires that you wait, while buying on credit allows you to purchase goods and services now in exchange for a promise to pay later? Cash? Credit? There are advantages and disadvantages to both methods of payment. You need to consider them carefully. Using Credit – A Big Decision Credit use has many benefits. Credit allows you to buy major items, such as cars and houses, without having to save entire purchase amount. Even though you don’t have enough money to spend, you can enjoy the item now. Credit cards also are widely accepted at a variety of stores, allowing you to buy wherever you are. When using a credit card, you don’t have to carry much cash, which is great if you are traveling. If you see something on sale at a great price but have no cash, you can buy it anyway just by signing your name. Using Credi