THE
RESOURCE
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ACADEMIC
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&
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Bank Fees
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CREDIT CARDS
Credit cards have made shopping easy but dangerous at the same time!
It is very easy to lose track of the amount you spent, and the bills will kill you.
But credit cards aren't all bad news; if you're careful, you can use them to your ADVANTAGE:
- You can prolong
the time in which you have to pay for purchases for up to a month and a
half.
- They're
convenient - there's no need to carry a load of cash when you're
planning a major purchase.
- Start your
credit rating/history. You'll need it later on in life if you want to
get a car loan, mortgage, etc.
- You can earn reward points towards free
purchases at
amongst other places
You can also get into BIG TROUBLE with credit cards:
If you can't pay up
before the deadline, the interest charges will kill you! Even if
you pay some of the bill, you'll get charged interest on the entire
bill.
For example, if you pay $99.87 of a $100.00 bill, you'll get charged
interest on one hundred dollars. It doesn't matter that you have an
account balance of 13 cents.
Interest charges range dramatically. Some cards have fees as low as 2.9% while others as high as 37%. It's best to shop around for the lowest interest rate.
Some credit card companies charge annual fees in exchange for premium services and lower interest rates. Determine your needs before signing on the dotted line.
