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Irina18 [472]
1 year ago
7

Sam qualifies for a home loan and after an intensive search, purchases a home. he makes his payments on time for about 3 months

and then faves financial problems and cannot make payments anymore . did same have good or bad debt?
Mathematics
1 answer:
garik1379 [7]1 year ago
5 0

In this case, we can summarize that Sam had a bad debt.

<h3>What is a bad debt?</h3>

Bad debt is a liability that one incurs over which they become unable to meet the required financial obligations.

When the ability to make repayments is lacking, Sam is most likely to lose the mortgage (home loan) with the consequential forfeiture of his home.

Thus, we can conclude that Sam did not incur a good debt but a bad debt.

Learn more about bad debts at brainly.com/question/24871617

#SPJ1

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