 Take a look inside How to Use Credit Wisely The Digital Edition of How to Use Credit Wisely allows you to download a PDF file of the book for easy printing. The link will be sent to you within 1 business day and will allow you to download the file up to three (3) times. Bankruptcy filings have increased to more than 1.7 million a year. That’s not surprising: consumer debt amounted to a staggering $2.6 trillion or $23,000 per household by the close of 2008. Mounting debt occurs painlessly – and is encouraged by both government policies and private lending practices. In today’s consumer credit market individuals are permitted to obtain a combined credit limit, that if utilized, far exceeds their ability to repay. This fundamental point seems lost on many credit users. Many people regard this extension of credit as evidence that their incomes are adequate to pay back whatever debt is run up on their various accounts. Worse, some consumers seem to regard credit as actual “income” rather than as a pledge against future income. The American Institute for Economic Research has long argued that this misconception can lead to financial disaster. Learning where you stand, with respect to income and credit (and thus understanding the limits of reasonable consumption), is the first step in avoiding consumer credit difficulties. Our newly revised booklet, How to Use Credit Wisely (2009), describes and explains these issues clearly and concisely. It covers tips on choosing the right credit card, the true cost of carrying a balance, and the ins and outs of balance transfers. These lessons can be helpful to anyone who uses, or is offered, credit. It is a particularly thoughtful gift to young persons, who are often enticed by offers of “pre-approved” credit and who may not understand the consequences of acting on these propositions. Table of Contents I. BUY NOW, PAY LATER - The Benefits of a Good Credit Rating
- The Risks of Using Credit
II. YOUR CREDIT - How To Establish Credit
- How to Shop for Credit
- Credit Cards and Credit Card Rates
- How to Choose the Right Credit Card
- Other Types of Borrowing
- Credit Protection Laws
- Should You Co-Sign For Someone Else's Credit?
III. HOW LENDERS EVALUATE YOUR CREDIT POTENTIAL - The Three "Cs" of Credit
- How Lenders Score Credit
- Limitations of Credit Scoring Systems
IV. MAINTAINING A GOOD CREDIT RATING - Credit Reports
- The Fair Credit Reporting Act
- Credit Complaints
- Avoiding Credit Card Fraud
- How to Rebuild Your Credit History
- "Credit Repair" Companies
V. THE CONSEQUENCES OF UNWISE USE OF CREDIT - Bankruptcies have Soared
- Alternatives to Bankruptcy
- The Bankruptcy Decision
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