What is the relationship between credit and debt?
A) Assuming debt means more credit will be extended.
B) Being extended credit means debt has been assumed.
C) Credit must be extended before debt can be assumed.
D) Debt must be assumed before credit can be extended
Credit must be extended before debt can be assumed.
When a person is approved for credit, a line of money available is provided. A person can then use this amount of money to borrow against which then creates the debt to the credit holder.
