this is the type of info that should be taught at school level to let the up and coming adults of the future have an insight to the pitfalls of plastic money

No, the reason they don't teach this to people is because everyone's in on it. This country runs on people's ignorance and letting the people know would affect every aspect of this capitalist nation. So they ask themselves "It's a free country, right? So let the people do what they please!"

Sad, but gut-wrenchingly true

I appreciate Ms. Taylor posting this though. It is big help especially for people trying to get off credit card debt i.e. me.

don't blame the credit card companies. They are out to make money. They have 'cashed' in on our greed and lack of patience. Got to have it now!
Read the fine print. No one bothers, but by law it is all written out for you on the fine print pages. If you are still confused, call customer service and ask questions...ask, ask ask. They know the answers. Credit card companies have been doing this type of thing for years.
I know this, my children know this. Rule #1 DON'T CHARGE MORE THAN YOU CAN PAY OFF when the statement comes in.
Rule #2 DON'T take your credit cards with you when you go out. That way if you want something really bad, the time it takes to go home to get your card is a natural cooling/reconsidering grace period.
BTW all 3 of us use our card monthly and wisely. We have no credit card debt and all of us pay off the statement completely. If by some circumstance we are unable to pay off in full, all credit spending stops until the bill is paid off. Usually next month. People need to see and circle in red just how much interest they pay per month. They just might decide to stop burning hard earned $'s up.

This is a very good article. Its content could be further enhanced by explaining free grace period- consequences of making purchases just before or just after monthly closing dates- real costs of carrying a balance, alternatives to credit cards- strategies to pay down credit card debt ie focusing on the highest carrying cost first etc. While the new rules will enlighten consumer to real costs associated with credit cards, they do little to help people actually become credit informed and physically help in reducing debt. You have the potential to do that.

its criminal that these credit card companies can charge such high interest rates when everything else just doesn't compare, such as mortgage, personal loans etc.

we are however entirely responsible for our credit conditions as we took on the card and the debt knowingly.

The most efficient method of paying your credit card off is one that was previously alluded to in sympatico and goes like this:
pay at least 10% of your balance on each payment. Yes its going to hurt to begin with but it really works and it works quickly............. you will find that within a year your out of debt or very close to it. Everytime you pay at least 10% within a few months the payment is quite small and so is your balance. I.E. balance $7500, payment should be 750 dollars that month and so on and so on. if you cant afford that try 5% to begin with.

Greed greed and more greed. Sure we are all responsible for our own actions. But as greed has caused an economic collapse by big companies, greed has also increased interest rates on credit cards. What has happened to a world where everything is reasonable. Long gone.

You missed the most blatant one. If you don't pay the entire amount due, then VISA charges you the interest on the entire amount. eg. Pay $999.00 on $1000.00 and you are charged interest on the entire 1000.00.

Ist, pay off your balance each month.
Then reap the rewards!

I have done this for years. eg I have gained over $3000 in rewards from one card in about 3 years.

If you cannot pay off the balance each month, you should not have a credit card in your wallet.

This may sound harsh, but true harshness is what you may very well experience if you fail to understand this statement. "If your desire for consumer goods is not exceeded by your hatred for debt you are a soft target for the credit card companies". Pay with cash. If you don't have the green, you don't need the machine.

I completely agree with Keith's comment. I never once had any kind of class/counseling at any level of schooling dealing with this issue. I spoke to my brothers, they said the same thing, but when it came down to their kids, they made sure they did it with them, no matter if they found it boring or not. There should be a section of the curriculum every year from about grade 7 or 8 and on.

If you're paying the monthly interest fee on your card, you should consider getting a personal line of credit at a much lower rate and using it to pay off your monthly statement in full. Then you pay off the line of credit at regular intervals at a much lower interest rate. Doesn't fix the debt problem but cuts down the interest payments and you'll be able to get out of debt quicker.

If you can't get a line of credit then cut up your cards and don't get another one until you've paid your current debt off.

Our economy is based upon credit. Blaming individuals for getting into debt while living in a system designed to get them into financial trouble is akin to blaming water for being wet. As real wages shrink, savings accounts become a thing of the past due to low interest rates and a volatile market ensures uncertainty in investments, people have to turn to credit more and more just to survive. It is one thing to plan on paying off your debt and bemoan the interest rates charged, it is another thing entirely to analyze why you are in debt and what you can do to prevent from falling into the debt again. There is a need for stronger regulation from the government in order to protect its citizens from the predatory practices of credit card companies (booths at colleges???) and to lower interest rates. Money spent on interest is money not spent on food, shelter, transportation, communications, education and charity; the spending patterns that create strong and vibrant societies.

Some months I pay more than the minimum in the hope that some low payments will be covered. In fact, I have not actually crunched the numbers so I cannot make the above statement in full confidence.

Yes, the schools should teach personal finance to teens, however we also need to take responsibility for ourselves and our families. I recommend the following books "The millionaire next door"; "Rich Dad, Poor Dad", "The Cashflow Quadrant"; "Start Late, Finish Rich", "Think and Grow Rich"... to name a few...the list goes on...Wise up!
Take control of your finances and your life!

Don't they realise that lowering the interest would boost the economy, peaple would pay of the balances more quickly, and WHAT IS THIS VERY HIGH SO CALLED INSURANCE THAT THEY CHARGE AS WELL AS INTEREST RATES that they charge every month, THE WHOLE THING IS A RIP OFF TO LINE SOMEONE'S POCKETS

A new trick when using a BAY card at Zellers or The Bay.
They ask you if you would like cash back....they should ALSO say, you will have to pay the going interet rate immediately upon withdrawal...which most do not know.
When I spoke to s store manager about this, she, of course, defended herself by saying they were merey offering a service. (a truly costly one indeed)

Basic human nature---selfishness---I want all. both credit card companies and those in debt are guilty of this sin. If we were not so greedy we would not be in this problem.

My Personal favourites are cutting the grace period back and the "oh you are such a great customer, you pay your balance each month, so don't worry about paying ANYTHING this month, we will just charge you interest, because we are not making any on your card!"

this info should be taught to highschool kids. the best thing is to manage your income smartly and you wouldn't need a credit card. I had one 20 yrs ago and cut it up after i saw the intrest charges. credit is what's screwing this country.