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Analyzing a Credit-Card Statement

Analyzing a Credit-Card Statement. Activity 3.3. Using credit cards wisely. Video 3 introduces key ideas about credit cards Many people use credit cards wisely, as for emergency situations But credit cards can fool you – and you may end up in debt over your head. Credit cards vs. debit cards.

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Analyzing a Credit-Card Statement

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  1. Analyzing aCredit-Card Statement Activity 3.3

  2. Using credit cards wisely • Video 3 introduces key ideas about credit cards • Many people use credit cards wisely, as for emergency situations • But credit cards can fool you – and you may end up in debt over your head Activity 3.3

  3. Credit cards vs. debit cards • Read Part 1 of Student Activity 3.3 carefully. • Questions for Discussion A through C refer to this reading Activity 3.3

  4. Questions for discussion: A • What is a debit card? Activity 3.3

  5. Questions for discussion: B • What is a credit card? Activity 3.3

  6. Questions for discussion: C • What are three tips for using a credit card wisely? Activity 3.3

  7. The big list: using credit wisely • Have only one card • Close any credit-card accounts you don’t use • Shred unused credit-card applications • Pay off the monthly balance • Shop for a card with a low interest rate and no annual fee • Use your card for travel and emergencies • Use credit-card records to track your spending • Avoid using your card for minor purchases Activity 3.3

  8. An important exhibit • Read Part 2 of Student Activity 3.3 and study the credit card statement (next two slides). Then Part 2’s Questions for Discussion A through G will appear on that statement. Activity 3.3

  9. A. What is the finance charge for the current billing period?

  10. B. What is the annual percentage rate if the unpaid balance is over $500? Less than $500?

  11. C. What is the minimum payment due?

  12. D. What is the total amount charged for purchases made during the previous month?

  13. E. How much credit does Joan Berelli still have available?

  14. F. What is the new balance?

  15. G. How is the new balance determined?

  16. Conclusion: Knowing how to read a credit card statement is a useful skill in managing credit. • You get the advantage of “buy now, pay later” • To make good decisions, it’s important to know how much credit costs you Activity 3.3

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