Transactions to Avoid for Credit Use

D

The correct answer is D. To purchase durable goods and services.

When considering the use of credit, it is important to remember that credit is a form of debt that requires repayment with interest. Therefore, it is generally not recommended to use credit for certain types of transactions, as they may lead to difficulties with repayment.

The transactions for which you should generally avoid using credit include:

A. To meet basic living expenses: Using credit to cover basic living expenses, such as rent or utilities, can quickly lead to a cycle of debt that may be difficult to break.

B. To make impulse purchases: Using credit to make impulsive purchases can lead to overspending and an accumulation of debt.

C. To purchase non-durable (short-lived) goods and services: Using credit to purchase items that will not last long, such as food or entertainment, may lead to repayment difficulties and accumulation of debt.

On the other hand, it is generally acceptable to use credit to purchase durable goods and services, such as a car or a home, as long as the borrower has a solid plan for repayment and can comfortably afford the monthly payments.

In conclusion, the correct answer is D. To purchase durable goods and services. It is generally acceptable to use credit for such purchases, as long as the borrower has a solid plan for repayment and can comfortably afford the monthly payments.