You also might have your checking account privileges revoked. Remember, credit is a privilege, to be used wisely. If you purchase something with a credit card or loan and plan to pay for it over an extended period of time, it's a good idea to include your credit payments in your weekly budget. You should also keep in mind that if you use credit to pay for something over time, the total cost of the item will be more than if you pay cash. This is because you must pay the credit card company or financial institution interest on the money they advance you to buy the item.
Credit provides people with greater financial flexibility.
Without it, most people would not be able to afford to buy their homes or cars or pay for their children's education. Nonetheless, credit places a tremendous amount of responsibility on the user. Keeping your credit purchases in line with your budget will help you maximize all the advantages credit has to offer. Start a discussion on where and how credit cards are used. Talk about the advantages of credit - how it makes it easier for us to pay for things we want.