Ethics The wide use of credit can lead to abuses. Some people take out more credit than they can repay. Then they refuse to pay back what they have borrowed. When merchants get stuck with unpaid balances, they pass along that cost to other customers in the form of higher prices. Thus, we all pay for people who overuse credit. Is it ethical for people to overextend their credit, knowing or suspecting that they will not be able to repay it? What can we all do to keep the cost of products and services at reasonable levels?