If you pay the monthly
"minimum payment" on your credit card account, you will
pay off the entire balance (assuming no additional charges) in
less than ten years.
 You are not very good with
budgeting your money and decide to get a "debit" card
which immediately deducts each purchase from your bank account.
In this way, you do not have to worry about paying high finance
charges due to overspending.
 You are broke and pay
your Visa bill with a "courtesy" check from MasterCard.
This is legal.
 You are very careful with your
money and pay all your bills on time at the end of the month.
As a result, you happily accept a "no annual fee" MasterCard
offer because the bank is essentially giving you a "free"
 At the campus student center,
an American Express representative offers you a free umbrella.
She explains that you will save money on monthly interest fees
by using the AMEX charge card rather than a credit card from MasterCard,
Visa, or Discover.
 Upon returning from the holiday
break, your credit card statement explains that you can "skip"
this month's minimum payment due to your excellent payment history.
This is the banks' way of rewarding loyal customers by waiving
the finance charges during the "skip" month.
 Credit cards are the most common
source of money for recent college graduates to start their own
 Falling behind in your credit
card payments is not a serious problem. This is because most employers
know that students have limited sources of income and rarely find
out about delinquent credit card accounts before job interviews.
 You receive your Visa credit
card statement on the 1st of the month and it is due 15 days later.
Since you always send the minimum payment, there is no financial
advantage in mailing your check early as long as it is received
by the 15th.
 You are going out with friends
and need $20 cash for the evening activities. Your options are
to take a cash advance from a nearby ATM or pawn your watch. Since
you will pay for this loan in full at the end of the month, you
decide to use your credit card since it is much cheaper than a
In spring 1999, President Clinton was forced to use cash instead
of credit at a book store. Which major company refused to pay
for his purchases?