Donald is finally bowing to pressure from his friend Greta and has decided to retrofit his house to make it entirely reliant on renewable energy. The total cost of the equipment and works is 6,000. However, he doesnt actually have the money to pay the full amount upfront so is looking at two different financing options.

• Option A is the credit deal offered by the retailer. Donald can pay in monthly instalments of 220, spreading the cost over 36 months.
• Option B is to buy it partly on his credit card which has an APR of 25.2%. Donald has no outstanding credit on the card at present, but hell have to use up his whole credit limit. Even then, he will need to find 3,500 from elsewhere, which he can just about scrape together, but it will wipe out his savings. He would then aim to pay off the credit card by paying 70 per month.

Describe two advantages and one disadvantage of Option A over Option B.