Question

To have a smoothie with breakfast more regularly, Jordan decides to buy a new blender that cost $59. Jordan can pay with cash, by debit card, or by credit card. Compare and contrast the payment methods Jordan must choose among. Decide which one will help Jordan avoid paying potential fees or interest on the purchase.(1 point) Responses debit card debit card Jordan can use any of the three payment methods without worrying about paying potential fees or interest. Jordan can use any of the three payment methods without worrying about paying potential fees or interest. credit card credit card cash cash

Answer 1

When considering the payment methods Jordan has for purchasing the blender, here are the key comparisons among cash, debit card, and credit card:

1. Cash:

   • Pros:
     • No transaction fees or interest since it's a direct payment.
     • No debt incurred, and it's an immediate payment.
   • Cons:
     • No rewards or benefits associated with credit purchases.
     • Risk of losing cash or having it stolen.

2. Debit Card:

   • Pros:
     • Immediate payment from the bank account, similar to cash.
     • No interest charges because it's not a loan.
   • Cons:
     • Some debit cards may have potential overdraft fees if spending exceeds the account balance.
     • Less reward points compared to credit cards.

3. Credit Card:

   • Pros:
     • Potential rewards or cashback on purchases.
     • Provides consumer protection and potential for building credit.
   • Cons:
     • If not paid off immediately, interest charges can accrue.
     • Potential for overspending and accumulating debt, leading to fees.

Conclusion: To avoid paying potential fees or interest on the purchase of the blender, the best option is to pay with cash or debit card. Both methods allow Jordan to make the purchase without accruing interest or fees. However, the most straightforward option with the least risk of any potential fees is to use cash.