Credit Cards and Other Financial Traps (02:29)
Tina started accruing debt at an early age with a CD club. After she received her first credit card, she was in financial trouble. Often teenagers must turn to family members or credit agencies to regain financial solvency.
History of Money (02:33)
Money is a medium of exchange for goods and services. Early money was jewels or gold and silver. Traps of credit cards include: overages, late fees and interest.
Credit Card Disadvantages (02:17)
These include: committing future earnings for something purchased today, interest charges, getting something for nothing, potentially damaging credit record, and possible identity theft.
Installment Credit (02:05)
This type of credit is used to purchase large items like cars. Remember when purchasing a car on credit, additional costs will be accrued: sales tax, interest, insurance, gas, maintenance, and DMV expenses. A car could end up costing twice as much as the car loan.
Revolving Credit (02:25)
Thirty days same as cash is a good way to establish credit history. Using revolving credit requires discipline and knowledge about the industry. Paying the minimum amount only makes money for the credit card company and does little to pay off the principal.
Credit Card Applications (02:29)
Learn the variables to look for on credit card applications: late payment fees, overage fees and APR. Make sure to read statements to ensure no fee increases. Double check receipts and call for the balance prior to going shopping.
Secured Credit Cards (02:37)
Build credit history by putting a cash deposit into the bank and borrowing against it. Learn the dangers and hidden fees of having an ATM card and a checking account.
Maintaining a Good Credit History (02:41)
Employers, landlords, and retail stores will check your credit history to ensure solvency. Learn the steps to achieve a good credit history. Applying the 80/10/10 rule ensures that you do not spend more than you earn.
Credits: Credit Cards & Financial Traps—Adolescent Problems and Workable Solutions (00:08)
Credits: Credit Cards & Financial Traps—Adolescent Problems and Workable Solutions
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