Use the 10 percent rule. Your debt load (except for your home mortgage) should not exceed 10 percent of your yearly after-tax income, страница 4

Annual fee: this is a yearly fee for having the credit card. You pay this fee whether or not you use the card. Fees can range from zero to $55 or more. Some issuers offer no-annual-fee cards. Read the fine print. Some companies will waive the annual fee for the first year to get you to accept their offer.

Over-the-limit fee: a fee assessed for exceeding your credit limit. With credit cards, you have a credit line up to a certain number of dollars. If your charges go over that limit, you may be charged an additional fee.

Late fee: a charge that is assessed if your monthly payment is received past the due date.

Cash advance fee: a fee that is charged whenever you get a cash advance using your credit card. If you get cash from a bank or ATM using your credit card, the money you get is called a cash advance. Credit card issuers may charge a higher interest rate on cash advances than they do on purchases. Read the fine print.

Transaction fee: a fee charged each time a credit card is used.

Keep your credit cards in a safe place

Having one multipurpose card can help you monitor use, keep track of charges, and greatly reduce your cost if your card is lost or stolen (for example, $50 instead of $250). Make sure cashiers return credit cards and your copy of any receipts.

Know your credit picture

The charts on page 6 will give you a summary of your use of credit: the types, amount owed and monthly payments, as well as a list of credit cards you are using.

In the event of loss, theft or unauthorized use of a credit card, notify the card issuer immediately, since you may be liable for up to $50 on each credit card. It is important to have a list of your credit card numbers, and the name, address and phone number of whom to contact. It is best to have two copies of this list, one in your home file and another in a safe place, such as a safety deposit box or home safe.

USING CREDIT WISELY, BULLETIN #4502           5 Sources     Credit charts developed by Joyce E. Jones, Kansas

State University Agricultural Experiment Station and

10 Ways to Reduce Debt consumer credit

© 2005 For a printed copy of the UMaine Extension publications catalog call 1-800-287-0274 (ME only) or 207-581-3792. To visit our online publications catalog go to http://www.umext.maine.edu/publications/pubs.htm Published and distributed in furtherance of Acts of Congress of May 8 and June 30, 1914, by the University of Maine Cooperative Extension, the Land Grant University of the state of Maine and the U.S. Department of Agriculture cooperating. Cooperative Extension and other agencies of the U.S.D.A. provide equal opportunities in programs and employment. 01/05

Type/purpose of credit	Amount still owed	APR*	Months left to pay**	Monthly payment

Cooperative Extension Service. curriculum. University Park, PA: Department of Agricultural and Extension Education, The Pennsylvania State University.

Banking and Personal Money Management. State of Maine Bureau of Banking, 1997.

McKenna, J.  and C. Makela. Credit: Getting Started and Staying on Track. Colorado State University Cooperative Extension, 2003.

Jones, Joyce E. Basic Money Management

*Annual percentage rate

**Or date payment is due for single payment loans

Total still owed:___________________ Total monthly payments_________________

Credit card report

Type of card	Credit card number	Company/institution	Address/telephone number

6                                                               UNIVERSITY OF MAINE COOPERATIVE EXTENSION