Credit - "Spending Tomorrow's Money Today"

Advantages

• Safer than carrying cash.
• Allows you to take advantage of sales.
• Convenient; allows you to catalog shop.
• Helps in short-term emergencies; car repairs, medical.
• You can purchase large items and spread the payments out.
• Gives you a source of spending record
• Establishes a credit record for you
  

• Future earnings are committed.
• Gives you a false sense of security; you feel like you have more income.
• Finance charges may be added to the purchase price.
• Can tempt you to overspend.
• Can easily get out of hand.
• Misuse leads to a poor credit rating

YOU MUST USE YOUR CREDIT RESPONSIBLY!!!

1. Limit the number of credit cards you have. Having, and using, too many cards will make it difficult to know how much you owe at any one time. It may also hurt you in the future because creditors consider open lines with a zero balance as an existing loan.
2. Keep track of credit use and give yourself a "personal limit". Decide how much you can afford to owe and do not exceed this amount.
3. Plan ahead for your use of credit. Before you use credit, know what other expenses you are going to have. Make sure your income can support all expenses plus debt payments.
4. Always pay bills on time; and try to pay more than the minimum each month.
5. If you are having difficulty paying bills, deal with the creditors quickly and openly. Or you can contact Consumer Credit Counseling Service - RI at (401) 732-1800 for help in dealing with the creditors.