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Should be D
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Statement 1 says:
People who don't plan their finances end up in debt.
-> So if they DID budget, they could avoid debt.
-> YES, budgeting helps.

Statement 2 says:
Budgeting helps people avoid taking loans.
-> Loans are a type of debt.
-> So budgeting helps avoid at least one type of debt.
-> YES, budgeting helps.
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Oh yeah, that's a really good point! I didn't think of it that way. You're right, I was wrong on statement 1. Thanks for pointing that out!
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But the question says can not will
Can signifies a possibility
Correct me if I am wrong as I have just started with the preparation :)
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In which order do you suggest to complete sections?
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WA@tej3253

Answer is D. But It should be B only.
In statement l - lack of financial planning is resulting into excessive spending, which further results into mounting debt. But it does not answers sufficiently how financial budgeting helps! How statement I is sufficient?

That question is discussed here: https://gmatclub.com/forum/can-financia ... 30182.html Hope it helps.
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