Beware of Credit Card Sweeters

Many stores will offer you 15 percent off when you sign up for a credit card. That 15 percent savings can end up costing you more in the long run; maybe you get hooked into using the store’s card and building your personal debt. Additionally, you may pay around 19.5 percent interest and if you make the minimum payment each month, you’ll be lucky to have the merchandise paid off by 2012. You wind up paying three to five times what the items originally cost.

When you consider taking a credit card, look beyond the tempting points, free miles, gifts, and consider the real costs:
• Is there an application fee?
• Are there processing fees?
• Is there an annual fee?
• What is their policy if I have trouble paying? What are the costs of a late pay?
• Do you have more than one card in your wallet? If the answer is yes, don’t take the offer unless it will replace a card and you really will cut up the old one.

Jon Noble
Staff writer
Debt Relief Options