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C H A P T E R 13
CREDIT CARD CRAZE
Chapter Resources: Making only minimum payments on a credit card balance substantially increases the cost of goods purchased and add years to the time it takes to pay off the balance. A minimum payment calculator such as www.bankrate.com/calculators/ credit-cards/credit-card-minimum-payment.aspx can tell you the true cost of a purchase if you cannot pay it off right away. What to dig a little deeper into personal finance topics? Kiplinger.com has excellent articles, tools, and quizzes to further develop your knowledge of personal finance and money management. Learning Goals By the end of this chapter you will be able to: • Compare revolving and non- revolving credit • Analyze the components of a credit card APR • List the actions that can trigger a credit card interest rate increase or fee • Calendar key dates on a credit card repayment timeline • Analyze a credit card statement • Use a minimum payment calculator to determine the financial impact of making minimum payments • Make a personal plan to use credit cards responsibly • (Opt.) Recognize predatory lending tactics
PRODUCT PREVIEW
I f you could buy things now and pay for them later, would you spend more money? How much do you value having something right away, even if you have to pay more for it? In the last chapter, you were warned about a wealth- devouring beast that can sneak up on you and suck the life out of your financial goals and security. Any idea what it is? It’s a credit card! Sure, they look innocent, all cute and colorful, but if you want a life of wealth and financial stability you must keep the credit card beast under control. With this chapter, we begin exploring the theme of Preserving and Protecting Wealth. Not surprisingly, credit card debt is one major risk to your wealth! Let's take a close look at credit cards, how they work, and what you can do to protect your precious wealth and financial security from falling prey to the credit card beast.
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