Credit card traps
Credit card companies have all kinds of sneaky little (legal – ugh!) tricks to separate you from your money. Be on the lookout for these traps!
- Always pay your bills on time. Avoid the late fees and the interest rate increases. Yes. They can increase your rate (and shorten your grace period) if you don’t pay on time. Every single month.
- Never go over your credit limit. Don’t even get close.
- Understand the fine print. Yes, you have to read it. It’s teeny-tiny to discourage you, and to hide things from you. If you don’t understand it, ask your banker to explain it.
- Always know the interest rate they’re charging you. They can raise it at any time. And they do.
- Never use cash advance. It has a much higher rate!
- Don’t accept free gifts. They aren’t really free.
- Never just pay the minimum. The average minimum payment on a $10,000 balance will take 608 months (that’s 50 years and 8 months) to pay off, and cost you an additional $24,995.78, just in interest.
Members can find more information from the THM on a Budget class.
Not a member? Join today! Get a total health makeover – including getting your finances in order!
Photo by Steve Woods
