Credit is an integral part of everyday modern life. From buying movie tickets, to paying for a meal at a restaurant or buying a car, credit is used. The most common use of credit is through credit cards. Knowing how to use credit wisely is a critical part of managing your finances and key to your financial health.

Advantages of using Credit:

Able to buy need items now

Don’t have to carry cash

Creates a record of purchases

More convenient than writing cheques

Consolidates bills into one payment

Disadvantages of using Credit:

Interest (higher cost of items)

May require additional fees

Financial difficulties may arise if one loses track of how much has been spent each month

Increased impulse buying may occur