Credit increases current buying power at the expense of future buying power.

Question

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When a person uses credit to make purchases, they are essentially borrowing money that they will need to pay back with interest. This means that they are increasing their current buying power by being able to purchase things they may not be able to afford with their current income. However, this comes at the expense of future buying power, as they will have to use a portion of their income to pay off the debt, reducing the amount of money they have available to make purchases in the future.

Credit Increases Current Buying Power at the Expense of Future