There are 3 costs that are linked to credit:

1. The responsibility of maintaining a firm budget.
2. The interest that accrues when one does not pay immediately.
3. Charges incurred if one does not pay the minimum balance within the stated time frame.

RESPONSIBILITY

In order to meet the credit requirements, it is necessary to maintain a budget that contains a plan for the monthly payment or for the total amount. Credit becomes one of the fixed expenses.

INTEREST

Interest on the remaining amount of the credit accrues over time. Although the interest may be minimal,
It's a good idea to pay off the principal as soon as possible so you can pay less interest.

ADDITIONAL CHARGES

There are additional charges for not paying the minimum balance on a loan or installments with a credit card. The costs of informal credit are the following: The lack of reliability of the term and of the terms of the credit and the high interest rate. It is very difficult to trust someone when it comes to an amount of money without a contract or formal payment plan. For that reason, it is a good idea to look for formal credit channels.