The total debt owed by America’s house holds and businesses has increa

Question

The total debt owed by America’s house holds and businesses has increased dramatically in the last two decades. In 1990, the average credit card debt for each house-hold with at least one credit card was $2,966. By 2005, that amount had risen to $9,205. In the same period, the number of bankruptcies filed in America nearly doubled. Clearly, increased credit card debt among Americans has led to the rising number of bankruptcy filings.

Which of the following, if true, would most weaken the author’s conclusion?

(A) In addition to credit card debt, most people who file for bankruptcy have other large debts like medical or legal bills.
(B) The bankruptcies mentioned in the argument include business bankruptcies, which account for a large percent- age of all bankruptcies.
(C) Increased housing values have also led to larger mortgages, but having large mortgages rarely leads to bankruptcy.
(D) The citizens of other nations have much lower levels of debt and are much less likely to file for bankruptcy.
(E) The average interest rate on credit cards is nearly 20 percent per year, and many Americans can only afford to pay the interest.

VBudhew · Answer

IMO A

it states that credit card was not the only reason for bankruptcy

jarlgrey · Answer

I think it should be B

Option A mentions that there are other reasons for bankruptcy like medical or legal bills so clearly it’s not just credit card debt - but the conclusion in the passage above doesn’t say “only” credit card debt or that credit card debt is the “main reason/contributor” for bankruptcies.

Option B states that most of the bankruptcies are business bankruptcies (and not household bankruptcies) - whereas the credit card debt mentioned in the passage/line of argument above is that of the households (and not businesses). Hence it weakens the conclusion that increased credit card debt (of the households) is the reason behind increased bankruptcies (out of which business bankruptcies represent a large percentage).

Option C doesn’t talk about the relationship between credit card debt and bankruptcies (the main point of the conclusion).

Option D talks about citizens of other nations which is irrelevant.

Option E mentions (one of) the reason(s) for increased credit card debt but again that doesn’t weaken the conclusion.

First attempt ever at writing a reply to a question here on GMAT Club, so please be gentle on me guys in case I’m not correct. 😊
Cheers!

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winterschool · Answer

The total debt owed by America’s house holds and businesses has increased dramatically in the last two decades. In 1990, the average credit card debt for each house-hold with at least one credit card was $2,966. By 2005, that amount had risen to $9,205. In the same period, the number of bankruptcies filed in America nearly doubled. Clearly, increased credit card debt among Americans has led to the rising number of bankruptcy filings.

Which of the following, if true, would most weaken the author’s conclusion?

(A)  In addition to credit card debt, most people who file for bankruptcy have other large debts like medical or legal bills.   Correct

(B) The bankruptcies mentioned in the argument include business bankruptcies, which account for a large percent- age of all bankruptcies.  Incorrect

support conclusion

(C) Increased housing values have also led to larger mortgages, but having large mortgages rarely leads to bankruptcy.  Incorrect

support conclusion

(D) The citizens of other nations have much lower levels of debt and are much less likely to file for bankruptcy.  Incorrect

so, higher debt > higher bankruptcy, support conclusion

(E) The average interest rate on credit cards is nearly 20 percent per year, and many Americans can only afford to pay the interest.  Incorrect

this indicate debt is the reason for bankruptcy

41396302717 · Answer

Hello  Bunuel 
Isn't the business aspect already mentioned in the argument(Businesses too are affected by credit cards), hence taking option B out of the weakner's race.

ravigupta2912 · Answer

Not really convinced between A and B. This is how I looked at it:-

Our argument confuses correlation (increase in credit card debt and doubling of the number of bankruptcies) with causation.

(A) In addition to credit card debt, most people who file for bankruptcy have other large debts like medical or legal bills. -- This argument says that hold on, there could be cause B or C among the population filing for bankruptcy. This makes the information that cause A (credit card debt) is leading to bankruptcy suspect. Had the sentence said "larger". This would have been a no-brainer answer.

(B) The bankruptcies mentioned in the argument include business bankruptcies, which account for a large percent- age of all bankruptcies. -- Okay, first of all i'm confused by what is "large"? Even 30% would be large for some? This isn't proving anything. But assuming that the "large %" remains constant, then it does show perhaps that the rising bankruptcies have business reasons? aka reason other than one mentioned in the argument? It would weaken the argument in that case.

Selected B as a guess but i cannot understand any solid ground for eliminating A.

ravigupta2912 · Answer

Option B does not say "most" - careful there. If it had said "most", then yes, it would be on a stronger footing vis-a-vis A. In CR, be careful of the quantitative markers (some, most, all, none, many, etc..) and their interpretation.

Jahnavi2021 · Answer

This is a bit confusing one, here's my understanding,

In option A it is mentioned that along with the credit card debt, people who file bankruptcy also hold other debts such as medical and legal bills. Hence, it is clear that those people also hold credit card debts and hence increase in credit card debts is contributing for an increase in the total number of bankruptcies, no matter what the people who hold the debt's mindset is.

In option B it states business bankruptcies, though it is not clear whether business bankruptcies include credit card debts, among the options present B serves the purpose well.

diasdexter766 · Answer

Option B brings in new information - supply the information to weaken the argument. Invalidates the credibility of the conclusion.

thisischelso · Answer

The total debt owed by America’s house holds and businesses has increased dramatically in the last two decades. In 1990, the average credit card debt for each house-hold with at least one credit card was $2,966. By 2005, that amount had risen to $9,205. In the same period, the number of bankruptcies filed in America nearly doubled. Clearly, increased credit card debt among Americans has led to the rising number of bankruptcy filings.

Which of the following, if true, would most weaken the author’s conclusion?

(A) In addition to credit card debt, most people who file for bankruptcy have other large debts like medical or legal bills.
(B) The bankruptcies mentioned in the argument include business bankruptcies, which account for a large percent- age of all bankruptcies.
(C) Increased housing values have also led to larger mortgages, but having large mortgages rarely leads to bankruptcy.
(D) The citizens of other nations have much lower levels of debt and are much less likely to file for bankruptcy.
(E) The average interest rate on credit cards is nearly 20 percent per year, and many Americans can only afford to pay the interest.

Premise - debt increased from 1990 to 2005, bankruptcies doubled during this time 
Conclusion - debt caused bankruptcies

Goal - we need to show that it wasn't necessarily debt that caused bankruptcies to increase during this time period.

A - Talks about other types of debt, but this answer doesn't show its relation to bankruptcies. Out 
B - In scope. Hold this answer 
C - Increased housing values can lead to larger mortgages.. but is it really the primary CAUSE to the increase of bankruptcies? Trick answer. Out 
D - Hm. Trick answer. Shows the effect we're looking for but really, who cares about folks in other nations. Those countries have might other economic conditions that are more advantageous to its citizens. Out 
E - This slightly strengthens the argument. Out.

Answer - B

The total debt owed by America’s house holds and businesses has increa

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The total debt owed by America’s house holds and businesses has increa

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615 to 715 in 15 Days (Ria's Strategies)

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