Importance of the Topic:

You will pay more if you are late paying bills or you miss a payment. Some people think that they just need to pay off the minimum amount. Interest costs can really accumulate over time. Not paying on time can also hurt your credit rating. This may lower your ability to borrow money and result in higher borrowing costs. Consumer need to be aware of interest rates and penalties charged. You need to check out the interest and penalty charges on all statements to ensure you are being charged the proper amount. It may surprise you to learn just how much interest rates and penalties are costing you. This may encourage you to pay bills on time and to pay in full when possible.

Desired Outcome, Knowledge, or Skill:

1. Compare credit cards before deciding which one offers the best rates for your situation.
2. Have a system for making regular payments on time.
3. Try to pay off as much of the balance as possible to avoid extra charges.
4. Check statements to be sure you have been charged the right amount.
5. Know you credit score.

Possible Activities:

1. Calculate how much interest you would be charged in one year if you only paid off the minimum.
2. Compare credit card fees with other available credit cards.
3. Establish a routine for paying bills on time.
4. Set up automatic bank payments to avoid being charged late fees.
5. Keep track of bills by setting up a filing system.
6. Find out your credit rating.