People should only charge a purchase on a credit card if they can pay the balance off over no more than a three-month period.  True or False?

Evaluation of the Statement

1. Understanding Credit Card Use: Credit cards are financial tools that allow consumers to borrow money up to a certain limit to make purchases. They often come with high-interest rates if the balance isn't paid in full by the due date.

2. Short-term vs. Long-term Debt: Ideally, carrying a balance for an extended period can lead to excessive interest payments. Paying off purchases within three months can help avoid interest charges altogether.

3. Financial Discipline: If individuals can consistently pay off their balance within this timeframe, it demonstrates responsible financial behavior and can contribute positively to credit scores.

4. Consequences of Extended Balances: Accumulating debt beyond three months can lead to financial strain, especially with high-interest rates typically associated with credit cards.

Conclusion

Given these considerations, the statement holds true as a guideline for responsible credit card use. Thus, it is advisable to pay off credit card purchases within three months to avoid interest and manage finances effectively.

Final Answer: True.