What are the benefits and liabilities of credit?

Some pros for credit include the following:

* Ability to get the use of a good or service before having to fully pay for it (e.g., buying a car would be difficult if one had to come up with the entire cost to do so)

* Helps drive responsibility in the credit (e.g., someone who gets used to using credit may have a better understanding of their financial circumstances)

* Reduces the amount of cash that needs to be carried around

Some cons for credit include the following:

* Easy for someone to become indebted beyond their ability to pay (e.g., buy too many things without thinking about how much they really cost)

* Credit contracts are sometimes difficult to understand, however, people don't always ask for help

* Credit use factors into insurance premiums and job opportunities