To help Jordan choose the best payment method for purchasing a new blender, let's compare and contrast the four options: cash, debit card, credit card, and briefly consider the implications of each in terms of potential fees and interest.
-
Cash:
- Pros: No fees or interest associated with cash transactions. It’s a straightforward payment that is accepted almost everywhere.
- Cons: Carrying cash can be cumbersome, and it may not be practical if Jordan doesn't have enough physical cash at hand. Cash transactions don’t build credit history.
-
Debit Card:
- Pros: Similar to cash, debit card transactions withdraw directly from a bank account, so there are no interest charges. Using a debit card can be more convenient than carrying cash.
- Cons: Some banks may charge fees for overdrafting if Jordan doesn't have enough funds in his account. However, if he checks his account balance beforehand, these fees can be avoided.
-
Credit Card:
- Pros: Using a credit card could earn rewards or cashback, and it can help build credit history if payments are made on time.
- Cons: If not paid off in full by the due date, Jordan could incur interest charges, which could make the blender more expensive in the long run. Additionally, some credit cards may have an annual fee.
Conclusion: Since Jordan wants to avoid any potential fees or interest, the best payment method would be cash. If cash is not a viable option or if he wants the convenience of electronic payments, the debit card could also be a suitable choice, provided he ensures sufficient funds are available in his account. Using a credit card may lead to unwanted charges or interest if the balance is not paid off in full.
Therefore, the statement that best reflects Jordan's goal to avoid fees or interest is that Jordan can use cash or a debit card without worrying about paying potential fees or interest as long as he manages his account correctly.