Staff Report
The average household receives eight credit card offers a month. In 1999, the average college freshman had a credit card debt of $1,700. In recent years, that number has grown to nearly $3,000.
The average credit card debt of all Americans who carry balances reached an all-time high of $5,610 in 2002, an increase of one-third since 1995. Due in part to aggressive marketing, credit card companies are making larger profits than ever. Between 1995 and 1999, credit card companies' profits nearly tripled, jumping from $7.3 billion to $20 billion.
Here are four tips to help navigate credit card offers:
Shop around before accepting a credit card offer Terms and conditions vary widely, so its important to compare offers.
Read the fine print Many punitive fees are stated only in the fine print.
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Avoid reaching the full available credit line Credit card purchases are more expensive than using cash or checks once interest and other fees are included.
Pay off all balances in full every billing period Or, pay as large a portion of the remaining balance as possible, making the largest payments toward the card with the highest interest rate.
Source: United States Public Interest Research Group
