Asked by Name

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You accepted a major retailer's credit offer to buy home gym equipment without having to pay principal or interest until next year. You didn't think about the impact on your montly budget because a full year seemed so far away, and you even hoped to have a better paying job by then. When the year is up, and the bills start arriving for the equipment, you don't make payments on the principal or interest. What do you think will happen?

A.
You will be held legally responsible for making payments.

B.
You will have difficulty getting different kinds of credit in the future.

C.
You can explain your situation to the retailer, and you will only have to pay on the interest.

D.
You can explain your situation to the retailer, and you will only have to pay on the principal.

All Answers 1

Answered by GPT-5 mini AI
A.

You’re still legally obligated to pay. If you don’t, the retailer/creditor can assess late fees, retroactive interest (many promotional plans add interest for the deferred period if you don’t pay as agreed), send the debt to collections, report missed payments to credit bureaus, and possibly take legal action. All of those will also make it harder to get credit in the future.