Creadit cards are wonderful if you have money to pay for what you buy. If you don’t pay your debt completely, you can have serious problems. In a few years, you could have your own credit card and you should know how to use it. Let’s look at an example.

Imgine you go to a mall with your Friends or with your parents and you buy clthes, a new camera and some DVD’s. The total bill is two hundred dollars. You pay with a credit card. The next month, your bank statement arrives. You need to pay your credit card. Imagine you have only one hundred dollars to pay your debt. Now you will have to interest. This means you nowowe more tan one hundred dollars. If you follow this pattern every month, you quickly owe more onterest tan the original expenses! For example, a one hundred dollar debt can become a five hundred dollar debt. You wll never be able to pay back that much money.

Many adults ignore the dangers of spending with credit cards and they have terrible debs. Ask in your family if people have (or have had) problems with credit cards. You may be surprised about their experiences.

	Created by Michel Tamayo almost 8 years ago

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