Today on MoneyLife

Host Chuck Bentley kicks off the program talking about people's perceptions of credit cards. Some feel they are evil and shouldn't be used.

Chuck does not agree with this idea, saying credit cards are simply a financial instrument.
They can be dangerous and many people do get in trouble with them, but if you’re a good steward of them, credit cards can be beneficial.

Chuck advises getting a card with no annual fee, and of course, make sure you pay off the balance each month so you avoid paying interest, late charges, etc.

• Almost 3 out of 4 Americans, (73%), have a credit card
• Unfortunately, only 30% carry no monthly balance
• 14% carry a balance that is at least half of their credit limit)

In the second segment, Chuck welcomes Curtis Arnold to the program. Curtis is the Founder and President of CardRatings.com, a consumer advocate Web site that researches credit cards and makes that information available to the public.

Curtis gives his personal experience with credit cards; he got his first card in college, then got more, and finally ended up $40,000 in debt.

Curtis wanted to pay down his debt, so he started learning about credit cards. He realized he wanted to share what he was learning with others.

Today, Curtis visits college campuses to teach students how to use credit cards wisely. He believes every college should include a personal finance class in its core curriculum.

Curtis explains that it's easy for credit card debt to become a snowball that rolls over and buries you.

He describes his book, How You Can Profit from Credit Cards:  Using Credit to Improve Your Financial Life and Bottom Line as a tool to help you avoid the pitfalls of credit cards, not a get-rich-quick-scheme.

To take full advantage of the rewards offered by credit card companies (cash back, air miles, points toward merchandise, gas cards), you must stick to your budget and pay off your balance in full each month. Curtis says "cash back" is the best reward for most people, since it's the easiest to use, has the most flexibility, and it keeps everything simple.

Chuck’s closing thoughts:

• Curtis Arnold got into trouble using credit cards, but he learned from the experience and is using it to help others
• If you’re in credit card debt, God can restore you and learn to use credit wisely
• Curtis advocates the prudent use of credit cards
• Not everyone needs a credit card
• If you struggle with credit, get rid of cards and live on a cash basis
• If you have self control, are willing to pay off the balance each month on time, and you live on a budget, credit cards can be beneficial
• You can find more helpful information in Crown's new booklet, Spending Plan solutions, from the MoneyLife Basics series.
• Chuck cites Proverbs 14:8, "The wisdom of the prudent is to give thought to their ways, but the folly of fools is deception."
• and Proverbs 14:15, "A simple man believes anything, but a prudent man gives thought to his steps."

Chuck reminds listeners about the upcoming WMBW Town Hall Meeting in Chattanooga on August 19th. Howard Dayton and Chuck will participate and take questions from the audience. If you live in the Chattanooga, Tennessee area, don't miss it!

College Students and Credit Cards

With so many outlets for creditors to reach students and few restrictions, credit card use among college students has steadily increased.
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Majoring in Credit Cards, Minoring in Money

With so many outlets for creditors to reach students and few restrictions, credit card use among college students has steadily increased.

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Getting Out of Debt

God’s Word says debt isn’t normal, especially long-term debt.

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Steps To Making a Budget

In making a budget, there are several steps, each requiring individual effort.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Pinciples for Operating a Business
• Business By the Book
• Crown Mvelopes