Take a wild guess

Test your credit card savvy. Do you know what you're getting into?

1. $5000 limit? Go ahead and spend it! Minimum payment is $100, interest rate is 12%. At this rate, you will pay off the debt in a mere

• 25 months
• 3 years 6 mos.
• 5 years 9 mos
• never!

2. When it's all over, you will have paid how much for $5000 worth of stuff?

• $5650
• $6212
• $6867
• $7236

3. Couldn't make that minimum payment? Oops. Interest rate just went up to 18%, plus you get a $25 charge. NOW guess how long it will take to get out from under it?

• 6 years 3 mos.
• 7 years
• 7 years 7 mos.
• 9 years

4. And when it's all over, at your new rate of 18%, how much will you have paid?

• $7200
• $8000
• $9019
• $10,000

But wait!

It gets worse! Next month you make the minimum payment - but first they take out the $25 late fee, so oops, you just fell short of another minimum payment. That will be another $25 late fee. Now you need to cover $50 in penalties, plus interest on the first $25, plus your minimum payment... get the picture?

Best policy: do not charge more than you can pay off each month. Avoid all fees and interest charges. Use your card as a convenience.