CJ bought the following assets this year. Which of these purchases would be considered “bad debt?”

a. He purchased a slightly used car from a pre-owned dealer. The car has an estimated useful life of 3 years. He put down 5% and financed the balance over 72 months.

b. He bought a new living room set that cost $5,000. He used his credit card that has a 23% APR. He paid the balance off within one month.

c. He purchased a home for $500,000. He made a down payment of 20%

and financed the remainder over 15 years.

d. He took a CFP® Certification education program in order to meet the education requirement to take the CFP Certification Examination. He paid

$5,000 for the program utilizing a student loan.