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. Delaying payment decreases the amount of future income you have to spend. When you use credit, you are living on money you expect to have in the future.