Using Credit

Advantages

There are advantages:

• Credit enables you to purchase big-ticket items like a home or a car - things you might never be able to afford if you had to pay cash.
• Credit can also help you finance your child's post-secondary education, remodel your home, pay for an unexpected emergency, or even help you to take a vacation.

Disadvantages

There are also some potential risks:

• It can be expensive. Unless you pay the full balance each month the items you bought with a credit card will cost you more. The credit card company charges interest on unpaid statement balances. (read the Terms and Conditions of your credit card agreement for exact details) The longer it takes you to pay off your account balance and the more interest you incur, the more your credit card purchases will cost.
• It can cause worry and stress. Owing more than you can afford to repay is likely to make you worry constantly and has been proven to interfere with your sleep. In some cases financial stress may contribute to an increase in alcoholism, drug abuse, or depression and affect job performance. For more information download “Coping With Financial Stress” from Consolidated Credit’s library.

Coping With Financial Stress