Question

Rebecca cannot afford her car payments. She decides to stop making payments on the car and get a credit card instead. Evaluate her decision. Select the best answer from the choices provided. A. Rebecca should not have gotten a credit card because her credit card payments will be higher than her car payments. B. Rebecca was right to get a credit card because her credit card payments will be lower than her car payments. C. Rebecca should not have stopped making payments on her car because now she will only qualify for a high-interest credit card. D. Rebecca was right to stop making payments on her car because now she will qualify for a low-interest credit card.

Answer 1

C. Rebecca should not have stopped making payments on her car because now she will only qualify for a high-interest credit card.

Her credit score will drop because she is in default on the car loan, and is considered a risky person to loan to so she will only qualify for high interest loans. This is just one of the consequences though - her car will probably also get repossessed if she continues to miss payment.