Question

multiple select question
select all that apply
what are some disadvantages of credit?

allows you to buy now, pay later
fico/beacon credit scores
the temptation to overspend
future income may decrease

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Explanation:

• "Allows you to buy now, pay later" is a key advantage of credit, not a disadvantage.
• "FICO/BEACON credit scores" are a system to measure creditworthiness, not a disadvantage of credit itself.
• "The temptation to overspend" is a direct disadvantage, as credit can lead users to spend beyond their means.
• "Future income may decrease" creates a disadvantage: if income drops, repaying credit debts becomes harder, leading to financial strain.

Answer:

C. The temptation to overspend
D. Future income may decrease