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					               Financial Literacy
            Credit Card Information




              University of Wyoming – Delta Alpha Chapter


2/26/2010
                               Credit Cards

 • What to look for in a credit card?
       • An attractive credit card will offer low interest rates, rewards (such
         as cash back, points to purchase merchandise and airline, cruise, etc.
         miles), no annual fees, and a fraud protection program.

       • What is a fraud protection program?
            •   A fraud protection program offers a 0% liability on unauthorized
                purchases.




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                             Credit Cards

• What to avoid in a credit card?
       • It is important to avoid annual fees or membership costs for rewards,
         rewards that cost too much money, and variable interest rates.


       • What is a reward program that costs too much?
            •   An airline rewards program that cost $100 annually and requires you to
                charge $20,000 worth of purchases to earn a roundtrip flight is a
                program that is not valuable to a credit card user that does not spend
                $20,000.

       • What is a variable interest rate?
            •   A credit card with a low introductory rate that switches to a high
                interest rate after a certain time period or after a late payment.

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                      Credit Card Debt

• How to get out of credit card debt?
       • In order to get out of credit card debt, it is important to control your
         spending habits and avoiding more debt. This can be done by making
         a budget and seeing where you can cut expenses that can be put
         towards the debt. The more expenses you cut and put towards
         paying off your debt the faster you will eliminate the debt.

       • See the budgeting guide for more help.




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                      Credit Card Debt

• What will paying more than my minimum
  payment do to my debt?
       • Paying only the minimum payment on $5,000 of debt will take over
         26 years to pay off, whereas paying twice the minimum payment on
         $5,000 of debt will take over 11 years to pay off.
       • Use this link to customize your credit card payment.
         Credit Card Payment Worksheet


• Which cards should I pay off first?
       • Pay off the credit card with the highest interest rate first.



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                             Credit Cards

• Where can I find other helpful information on
  credit card debt?
       • Debt Calculator
            •   http://www.bankrate.com/brm/calc/creditcardpay.asp
       • Tips to Get Out of Credit Card Debt by ABC News
            •   http://abcnews.go.com/GMA/story?id=1921876&page=1
       • 12 Ways to Get Out of Credit Card Debt by salary.com
            •   http://www.salary.com/personal/layoutscripts/psnl_articles.asp?tab=ps
                n&cat=cat011&ser=ser035&part=par245




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                   Credit Card-Tips

 • The average student credit card debt is around
   $2,800.
       • Don’t become another statistic


 • Try to only charge what you can afford to pay off
   at the end of the month.

 • Interest rates, credit limits and other credit card
   features are not the same on all cards.
       • Choose the right card for you
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            For additional financial literacy information please visit the
                                     links below.
                              Student Loan Information
                                 Savings Information




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2/26/2010
                                References
 Rosen, D. (2001, April 16). How do I get rid of credit card debt? In Ask the Dollar Diva.
     Retrieved January 14, 2008. http://www.bankrate.com/brm/news/dollardiva/20010416

 Ivey, A. (2006). Drowning in Debt? 6 Tips for College Students and Recent Grads. In Young
     Money Blog. Retrieved January 14, 2008.
     http://www.youngmoney.com/credit_debt/get_out_of_debt/060830




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