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guapka [62]
3 years ago
10

What is a disadvantage of using credit?

Business
2 answers:
Rom4ik [11]3 years ago
5 0
Not being able to pay it off is a big one.
 
nataly862011 [7]3 years ago
4 0

Answer:

Incurring inflated interest charges over and above the principal amount

Explanation:

When items are purchased on credit, it essentially means that the buyer has taken a loan to finance their purchase. This loan incurs interest. Interest is the cost of using spending cash money to buy a good or a service in the current time period  instead of saving and purchasing it at a later period. Credit providers tend to charge extremely high interest for the convenience of flexible purchasing power. These interest charges, accumulated over time, become a source of insolvency for the debtors who are unable to repay the interest, the principal amount or both.

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Answer:

Substitutes

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