Section # 2

-Managing Your Credit: If you are going to purchase goods and serviceswith credit, you must also take on the responsiblities that go along using credit.

-Pay on Time: When you use a charge accont or a credit card, you will recieve a monthly statement that lists the charges and payments for the previous month.

• Previous balance, or amount owed at the end of the last billing period
• New purchases, including each item bought during the past month. Each purchase increases the amount you owe.
• Payments, which are the money paid on the account, and credits, which are goods returned to the store or buisness for credit. These decrease the amount you owe.
• Finance charges, if any, that were added to the bill. These charges increase the amount you owe.
• Current balance, of the total amount you owe. When you recieve your statement, check all the information to make certain it is correct.
• Due date for payments

-Keep Accurate Records: If you charge accountsor credit cards, you need to keep records of the charges you make. If you discover that your card is missing or someone has stolen it, it is your responsiblity to notify the card issuer immediately.

-Avoid Credit Problems: Credit cards and charge accounts are useful financial tools, but they can be easily misused. It is important that you read the fine print on the loan contract carefully before signing it.

• Garnishment: Some contracts allow the creditor to take part of your wages if you miss a payment.
• Repossess: Or take bake the collateral.

Quick Checks

#1 What 6 items do most monthly credit statements show?

#2 What is the 1st thing you should do if your credit card is lost or stolen?