GETTING HELP
Don't ignore the problem if you are having difficulty paying your credit card bill– be proactive: • Stop using the card;
OFFICE OF ATTORNEY GENERAL LARRY LONG
• Speak openly to a parent, advisor, or counselor; • Contact Consumer Protection for advice on selecting a credit counselor and dealing with lenders; • The sooner you speak to someone about getting help, the better off you will be.
REMEMBER, there is always a solution to this problem .
FISCAL FITNESS… a guide to keeping your credit cards financially fit
OFFICE OF ATTORNEY GENERAL LARRY LONG
500 East Capitol Pierre South Dakota 57501
Phone: 605-773-3215 Fax: 605-773-4106 www.state.sd.us/atg
Copies of this document were printed by the Attorney General’s Office at a cost of $ .09 per brochure.
Congratulations! You have reached the age when credit cards are available to you - but this new opportunity comes with important responsibilities. Please allow us a few minutes of your time to give you some pointers.
FISCAL FITNESS
SPEND WISELY
Avoid overspending by differentiating between needs and wants. Overspending can lead to potential problems, including:
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UNDERSTAND THAT YOUR CREDIT CARD TERMS MIGHT CHANGE
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Refuse to mail free information unless you provide personal financial information such as credit card account numbers and balances. Demand that you make payments to them before your creditors have accepted the plan you are offering. Promise to erase or remove negative information from your credit report. Contact you through telemarketing representatives or by leaving messages on your answering machine.
Collection calls Collection lawsuits Bankruptcy Low credit score (remember -some future employers may check your credit score.)
PAY OFF YOUR CREDIT CARD BALANCE MONTHLY
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Some credit cards offer very low "introductory rates." However, in many cases, credit card companies can change the terms of your agreement. For example, if you miss a credit card payment, or even a completely unrelated payment (example - a monthly car payment), some credit card companies will change the terms of your agreement, including raising your interest rate.
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Making only minimum monthly payments will cost you a lot of money in the long run. For example, it will take you almost eight years and cost you a total of $931.00 to pay a $500.00 balance.*
If you find yourself in financial trouble, don't panic, help is available - but be aware that some offers of "help" may actually hurt you more than they help. Here are some tips: 1. Contact a local credit counseling agency see www.nfcc.org for a list of legitimate credit counselors. 2. AVOID credit counseling organizations or debt management plans that:
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3. Remember - "NONPROFIT" does not mean "LEGITIMATE." Some "nonprofit" debt management organizations have been sued by state Attorneys General because they made deceptive claims about their services and because they did not provide the help they had promised. 4. Contact the South Dakota Attorney General's Consumer Protection Division at (800) 300-1986 and they can provide some guidance regarding how to find legitimate help.
EXAMINE YOUR MONTHLY STATEMENTS CAREFULLY
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Charge up-front or monthly fees for enrolling. Pressure you to make "voluntary contributions" (another name for fees)
Contact your bank immediately if you see charges you did not authorize or if you spot other problems.
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*assuming you make the average $10.00 minimum monthly payment and that your credit card charges a standard 18% interest rate.