Problems facing users of credit - SS2 Commerce Past Questions and Answers - page 1
What problem may users of credit face if they accumulate multiple loan or credit card payments?
Debt burden
Overspending
Credit score impact
What are some additional costs that users of credit may incur?
Interest charges and fees
Late payment penalties and fines
Impulse buying expenses
What risk do users of credit face if they fail to make timely payments or max out their credit cards?
Overspending and impulse buying
Negative impact on credit score
Identity theft and fraud
What problem can arise for users of credit if they fall victim to identity theft?
Accumulated debt burden
Unauthorized credit card charges or loans
High interest charges and fees
What issue may users of credit face if they rely on credit for purchases they cannot afford?
Overspending and impulse buying
Identity theft and fraud
Difficulty managing debt
Define the term "debt burden" in relation to users of credit.
Debt burden refers to the accumulation of debt faced by users of credit due to reliance on loans or credit cards, making it difficult to manage multiple payment obligations.
What is one potential consequence of a negative impact on a user's credit score?
A negative impact on a user's credit score can make it more challenging to secure future credit or loans, potentially resulting in higher interest rates or difficulty obtaining credit approval.