Personal Finance 1st Edition by Jack R. Kapoor

Exercise 6

1   What is consumer credit?

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2   Why is consumer credit important to our economy?

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3   What are the uses and misuses of credit?

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4  What are the advantages and disadvantages of credit?

Action Application Using Web research and discussions with family members and friends, prepare a list of advantages and disadvantages of using credit.

Step 1 of 6

1) Consumer credit:

Consumer credit is the use of credit for personal needs (except a home mortgage) by individuals and families in contrast to credit used for business purposes.