Preventing the Credit Card Blues at 22

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Preventing the Credit Card Blues at 22

• Brought to you by
• Cooperative Extension

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Presented by

• (Your Name) , Extension Educator
• UN-L Cooperative Extension (?) County
• Courthouse
• (City) , Nebraska

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Presented by

• (Co-presentors name)
• UN-L Cooperative Extension
• (County)
• (Location)

• (Co-presentors name)
• UN-L Cooperative Extension
• (County)
• (Location)

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• Plastic?
• Debit vs.Credit

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• AVAILABLE TO USE
• WITH A
• PROMISE
• TO PAY BACK

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Kinsleys

• Wants
• vs.
• Needs

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• Pressures?
• Incentives?

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Lynns Shopping For a Credit Card

• APR
• or
• Annual Percentage Rate

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Lynns Shopping For a Credit Card

• CAUTION
• The advertised
• introductory rate
• applies only to cash
• advance checks
• and balance transfers.

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• Introductory Interest Rates
• generally expire after
• 3 to 6 months

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Additional considerations when choosing a credit
card

• Credit line
• Other fees
• annual fee
• finance charge
• over limit charge
• Incentives

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• Shop around
• To get the best credit card for your needs
• examine the interest rate year around
• does it have an an appropriate credit line
• does the credit card have an annual fee

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What constitutes late?

• Bill has to make it to payment center by
  due date
  
• And possibly by a specified time
• 200 p.m. CDT? EDT?
• Legal holidays
• Tip if mailing payment allow 7-10 days

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Penalties for being late

• Late fee
• average 19 to 29
• Lose introductory
• interest rate
• jump to
• regular rate
• or
• jump to an even higher APR than regular rate

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Cash advances

• Contract says fee for cash advance is 3
  of the amount chargedor 30 but
  
• The credit card company charges a
• minimum fee of 5.00
• Interest rate often higher
• Interest begins accumulating
• immediately

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Jaynes Monthly Bill

• The advertised introductory rate applies
  only to cash advance checks
  
• and balance transfers.

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What Jayne Expected

• Tires 129.00
• Minimum Payment - 50.00
• Balance remaining 79.00
• Interest on balance due .00
• (at Introductory 0 APR)
• Pizza 15.00
• Cash Advance 10.00
• November Balance Due 104.00

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What Jayne Really Got!!!

• Balance carried from October over 79.00
• October Late Fee 19.00
• Interest on tires _at_ Penalty Rate 1.70
• (15.99 APR)
• Sub-total
  99.70

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PlusJaynes New Charges

• Pizza 15.00
• Cash Advance 10.00
• Cash Advance Fee 5.00
• Cash Advance Interest 1.40
• 15.99 based on 13 days
• November Balance Due 131.10

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Lee maxes out
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How can you avoid getting in Lees predicament?

• Limit credit card use
• to what you can
• pay off in total
• when the next bill arrives.

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Why might Lee have not been able to pay the
credit card off sooner?

• Lifecycle changes
• get married
• have children of your own
• buy a house and furnishings
• Things happen
• major car breakdown
• doctors bills for colds, broken bones and
  teenagers withzits
  
• economy declineslose your job

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Is it your parents responsibility to pay your
credit card debt?

• NO
• However, if a parent co-signs the credit card
• application then the parent would be responsible.

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• My signature means that I agree to the terms and
  conditions on the reverse side of this form
  
• MeaningI agree to pay according to the credit
  card companys terms
  
• fixed or variable APR
• on time
• w/ at least the minimum monthly payment

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• Legally
• Binding
• Contract

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If you must have a credit card, experts recommend

• have only ONE!

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Protecting Sams Credit and Identity

• Protect all personal information name, address,
  date of birth, Social Security , mothers
  maiden name, and account numbers
  
• Shred all bills, credit card applications, junk
  mail, etc.
  
• Never give out personal information over the
  phone
  

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Its not a mystery for Morgan

• ATM safety
• Be alert for anything suspicious
• Be share ATM is well-lighted
• Avoid ATMs with obscuring bushes
• Take a companion along at night
• Never accept offers for assistance
• Leave plenty of space between you and the
• person in front of you
• NEVER stand around and count your money!

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Laura loses it

• Call the card issuer immediately
• Report the loss/theft to authoritiesincluding
  campus police if in college
  
• Call the three national credit reporting
  organizations and place a fraud alert
  
• Check monthly statements carefully

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Remember establishing a good credit history means
handling credit wisely

• Having a credit card is not what
• establishes a good credit history
• Its establishing a good record of
• re-paying your debts that really
• matters.

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• Cooperative Extension
• ? 2002 ? University of Nebraska ? Institute of
  Agriculture and Natural Resources