Class 3 - o Grab the freebies Affinity cards o You charge...

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DEBT - Why we use credit cards: Easy and convenient Use the product or service while paying for it Emergency situations Establish a credit history - Cautions with credit cards Credit costs money Interests fees, cash advances - Types of credit Open – ended (revolving) o Macy’s Sears, JC Penny o As long as you stay under the limit you can charge items Closed – ended (installment) o Fixed monthly payments Secured o Collateral Unsecured - Types of cards Interest Rate o Annual Fee o Rebate or other bonus o Gold or platinum cards
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Unformatted text preview: o Grab the freebies Affinity cards o You charge alot Secured cards o Damaged credit MINIMUM PAYMENT ISSUES 2 % of amount owed-Interest payment (APR/12) What you paid towards the principle New methods of computing: Minimum payments changed. Finance charges + 1% of balance = minimum payment OR Finance charges + $10 = minimum payment CREDIT RATIOS Debt payment to disposable income Debt payments Disposable income = .15 - .18...
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Class 3 - o Grab the freebies Affinity cards o You charge...

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