Buy now, pay later: Most people strive to improve their standard of living over time. The ability to purchase large-ticket items on credit— with borrowed funds—can sometimes make this dream a reality sooner. Being able to buy more expensive items now and pay for them over time makes it possible to fit purchases into your budget. You don’t have to save up the entire purchase price of a car, for example, before buying one. Instead, you can essentially enjoy the use of the product while you are paying for it. This type of arrangement is advantageous as long as
(1) you can afford the payments without sacrificing other worthy financial goals, and (2) the product you purchase lasts at least as long as the time period over which you make payments.