Tips and Tools For Financial Success - Newton Free Library

Activity 4: Using Credit Cards Responsibly (from FDIC Money Smart)
Each of these four people is using their credit cards in different ways. Read each scenario and determine
whether or not they may be using the cards responsibly. Describe what could happen if each person
continues to use their credit card as described.
Example 1
Maria receives a credit card bill. She gets a cash advance on another credit card to pay part of the bill.
Example 2
The balance on Marvin’s credit card is $2,410. His limit is $2,500. He makes only the minimum payment
($20 a month) and is always close to the limit on his credit card.
Example 3
Jerome uses his credit card for convenience. He pays cash for most small purchases. He pays his credit
card bill in full each month.
Example 4
Cathy was excited to receive a credit card offer in the mail. She applied for the credit card without
reading the terms. When the card came, she bought several new outfits for work. When the credit card
bill came, she was surprised to find additional fees charged to her account totaling $179.
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