The O-town Scene

Trust Me, I’m a Counselor by Lisa Ryther Be smart spending with credit cards I can’t tell you how many credit card offers I get in my “junk mail” every week, enough to heat my house for a year. Why do I throw them away? My motto is “if you can’t afford it, don’t buy it.” Thinking of giving the old plastic a try? Be smart with your spending. Here are some tips on how to play the credit game without striking out: The big picture Credit cards can be very demanding when it comes to interest. Most companies charge an average of 18 percent, which is signifi- cantly higher than most other types of loans. I find that too many people these days are carrying large balances on their credit cards, most often paying their minimum balance each month. If you can manage to use your credit card wisely by paying off the balances each month and choosing a card with rewards (i.e mile- age) you can develop good credit and the skills needed for a successful financial future. Time to pay the bills When your bill arrives, the most important thing to take note of is the due date. Whether you choose to make the minimum payment or pay the total outstanding balance, your payment must reach the financial institution by the payment due date. Otherwise, it is considered late and can affect your credit history and tag late fees, penalties and/or additional finance charges. If the account due date falls at a time when it is harder for you to make the payment con- tact the card company to see if your billing cycle can be changed or the payment could be adjusted to meet your budget. Let’s keep in touch Planning on making any changes? Be sure to let your credit card com- pany know so your monthly state- ments find their way to your new home. Be prompt, as it takes time for a statement to be forwarded to your new address. This will help avoid late payments. If you’re late to a very important date Credit cards must be paid every month by the assigned due date. Even one late payment can cause your interest rate to increase. Bring the account back to good standing by paying the bill as soon as you can. If a credit card is unpaid for more than one cycle (usually 60 to 90 days) the account is considered to be “in default,” and after 180 days will be sent to collections. If your account lands in the land of default or collections your situation becomes more difficult. The credit damage brought on by not paying your balance can follow you for up to seven years, making it difficult for you to secure future support from finan- Just financial cial institutions. some tips to keep your future bright, take it or leave it. — Lisa Ryther Lisa Ryther is a counselor in the College Assistance Migrant Foundation Program at the State University Col- lege at Oneonta. 6 O-Town Scene June 30, 2011

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