Question

Which of the following is an advantage of consumer credit?

A. It can encourage customers to spend beyond their means.
B. It costs more than cash purchases.
C. It can earn extra money for lenders.
D. It can allow you to save money if you time your purchases correctly.

Answer 1

D. It can allow you to save money if you time your purchases correctly.

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Answer 2

D. It can allow you to save money if you time your purchases correctly.

For example, you could purchase something when it goes on sale and pay it off with minimal interest rather than waiting to save up money and buying at full price. (the other answer choices are all disadvantages to consumers).