As we near the Holiday season it is a good idea to look at the real cost of credit use. When carefully used, credit can have some financial benefits. The advantages include the use of goods and services as you are paying for them. Delaying payment for some goods and services will give you a greater share of your current income to use for other purposes.
Credit transactions are more convenient and are safer than using cash.
There is no need to carry large amounts of cash, and credit makes it easy to take advantage of sales. Credit can make returning merchandise easier. Merchants may be more receptive in making adjustments on open accounts because returns can be credited to the account instead of requiring a cash refund. The major disadvantage is that it is easy to overextend spending when using credit and harder to resist impulse purchases. The ease of buying and returning merchandise on credit encourages you to shop less carefully or fail to plan your purchases.