Question

Grant has avoided applying for credit cards or taking loans. He only uses his savings to pay for purchases. What is the most likely result of his choice?
1. He will not be able to buy a house or car.
2. He will not have any debt to pay back.
3. He will not be able to buy expensive things.
4. He will not have any money for emergencies.

Answer 1

Answer:

2. He will not have any debt to pay back.

Explanation:

Credit cards and financing consist of ways to advance a value that the consumer can use today to pay in the future. Thus, if a person does not trigger any of these mechanisms for preferring to use cash, he will have no debt to pay back.

Answer 2

He will not have any debt to pay back.