In your notebook… Imagine you have a $2,000 balance on a credit card with an 18% interest rate. How long do you think it will take to pay off the balance.

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Presentation transcript:

In your notebook… Imagine you have a $2,000 balance on a credit card with an 18% interest rate. How long do you think it will take to pay off the balance making the minimum payment (interest + 1% of balance) each month? How long do you think it will take to pay off the balance if you pay $100 per month? Credit Card Calculator

Learning Goals Students will be able to… Define key terms related to credit cards. Analyze and assess a credit card offer. Identify essential advice regarding the use of credit cards.

Credit Cards Using Them Wisely

The Numbers 29% of Americans have no credit cards (up from 22% in 2008) Of those that have cards, the average number is 3.7 On average households carry about $5700 in credit card debt Per the Credit Card Act of 2009 those under 21 cannot get a credit card unless they have an adult co-signer or can prove they have sufficient income to pay bills

This data excludes store cards.

Your Task Read through the ABCs of Credit Card Finance: Essential Facts for Students Fill in the graphic organizer Share your thoughts with your partner Together analyze the credit card offer

Let’s Summarize Record 3 tips for using credit cards wisely 2 common credit card costs 1 question you have about credit cards