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4. Pay bills for credit cards

Explain to the child a principle of the payment of invoices for expenses on credit cards. It can be difficult enough, if at you the debts great sum has collected. Nevertheless, it is very important, that the child has understood both negative, and the positive moments of use of credit cards. We offer you some the elementary definitions.

Credit cards. Credit cards are issued by banks, other financial institutions or shops that you could pay with their help the goods or services. You receive the goods or services immediately, and the bank or shop pay for them instead of you.

Extract. Every month they send you an extract from your bill in which it is specified, how much Money you have spent this month (how much they have paid for you) and to what number you need to pay this sum to avoid charge of percent and it for payment delay.

Percent on credit cards. If the amount of debt specified in an extract is not paid to a target date for the debts sum percent on much higher rate, than on other kinds of commission fee are charged.

The minimum payments on term. Many banks and shops allow to pay you not all amount of debt entirely, and itthe minimum sumit. In that case raised percent are charged on the remained amount of debt. As a matter of fact, your creditors are interested in that you did not pay at once all amount of debt on credit, a card. They consider that time has already incurred all cares on service of such credit let is better you will stretch payments, and the much bigger percent will go it from it.

Will pay special attention: this feature of credit cards has led to that many people had enormous debts. How it occurs?

- In one of months you have not enough money and you are limited to the minimum payment. Continuing to write down next month the operational expenditure on a card, you increase the credit sum even more.

- To pay the minimum sums it has appeared so easily that you resort to this service month after month. But thus you continue to pay off with your card.

- As you regularly register the minimum payments on term, the estimation of your credit status remains enough high and you start to receive credit cards from other companies. Soon in your wallet there are five different credit cards (according to service "CardWeb" the majority of families in the USA is used on the average by five-six different credit cards).

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