Latisha works as a graphic designer and just got a raise of $100 each month. She...

 

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Latisha works as a graphic designer and just got a raise of $100 each month. She wants to buy a new television and furniture and thinks this raise is enough to pay for those purchases. Tired of her hand-me-down furniture from her parents and her 10-year-old television that she got from a garage sale, she plans to use her credit card to buy the new things. Cur- rently, she has $500 in her savings account, and she figures that with her raise she can easily do payment plans toward the television and furniture. To make the situation even more tempting, her credit limit still has $1,000 before it is maxed out. She plans to use the card toward the purchases so she can buy everything now. Does her plan sound like a smart one? Why or why not? Create a list of pros and cons that you see about Latisha's plan to purchase a new television and furniture. Make sure you are able to justify your answer. 2 3 Are there any other ideas you can think of as a way for her to get the new stuff without spending all of her savings? Is there something better she could do with her $1,000 credit on her credit card? Latisha works as a graphic designer and just got a raise of $100 each month. She wants to buy a new television and furniture and thinks this raise is enough to pay for those purchases. Tired of her hand-me-down furniture from her parents and her 10-year-old television that she got from a garage sale, she plans to use her credit card to buy the new things. Cur- rently, she has $500 in her savings account, and she figures that with her raise she can easily do payment plans toward the television and furniture. To make the situation even more tempting, her credit limit still has $1,000 before it is maxed out. She plans to use the card toward the purchases so she can buy everything now. Does her plan sound like a smart one? Why or why not? Create a list of pros and cons that you see about Latisha's plan to purchase a new television and furniture. Make sure you are able to justify your answer. 2 3 Are there any other ideas you can think of as a way for her to get the new stuff without spending all of her savings? Is there something better she could do with her $1,000 credit on her credit card?

Answer rating: 100% (QA)

1 Latishas plan may not be a smart one for several reasons a Reliance on credit card Relying solely on a credit card for major purchases can lead to longterm debt if not managed properly Latisha shoul... View the full answer