Question

11011e of credit Although using credit can have benefits if you do it wisely, there are also several downsides to using credit. Аа А Credit Reduces Your Financial Flexibility Using credit can bind you to a financial obligation to your lender. As such, taking on debt can reduce your financial freedom. In addition, the money that you spend each month on repaying your debt is money that you could have spent elsewhere on other opportunities. Using credit can your ability to save and invest for the long term. You can also think of credit as a promise to "work for the creditor" in the future to pay off your debt. Credit Can Tempt You to Spend More Money A major of credit is that it can lead to overspending. This is often because credit cards make it easy to purchase items immediately that you would have had to save up for if you had not used credit. And once you are used to carrying debt, it may seem easier to keep buying on credit before you have paid off your existing debt. Interest Costs You Money Interest is the price you pay for using credit; it is the money that you pay to the lender for borrowing the lender's money. When interest is stated in dollars interest makes in part of the which is the total -PC о не

Answer 1

CREDIT REDUCES YOUR FINANCIAL FLEXIBILITY

ANSWER:-   Using credit can reduce your ability to save and invest.........

CREDIT CAN TEMPT YOU TO SPEND MORE MONEY

ANSWER:- A major flaw or disadvantage of credit is that........

INTEREST COSTS YOU MONEY

ANSWER:- Interest makes up part of the finance charges,which is the total dollar amount......

ANSWER:- The APR expresses the cost of credit on a yearly or annual basis as a percentage rate.For example, a single payment, one year loan for $100,000 with a Finance charge of $13000 would have an APR of 13%.

ANSWER:- Knowing the APR allows you to make comparisons between credit options.For Example, a loan with an APR of 8% will cost you less than a loan with APR of 10% assuming other fees and charges are the same. Generally you should try to obtain credit with the least or lowest possible APR.

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