Advantages-disadvantages of consumer credit


Question:

I want to continue explaining the advantages and disadvantages of consumer credit and to make sure to explain what leverage is and why it is important.

I have to explain the advantages and disadvantages of consumer credit. I also have to make sure you explain what leverage is and why it is important.

So far, I am starting with the definition of consumer credit as: "the credit purchase for personal needs (not included is the home mortgage)". My second definition I want to include ia that of leverages as: "the use of borrowed funds to increase your purchasing power". What would I include next to emphasize this to my friend who understands nothing about personal finances and budgeting?

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Finance Basics: Advantages-disadvantages of consumer credit
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