With the new credit card regulations in Canada, it’s more important than ever to read the fine print on your credit card agreement. If you don’t have a copy, go on the web or ask for one from your credit card issuer.
There are three key terms you should now:
- Payment terms. When are payments due? What are the penalties if you pay late?
- Fees. What other fees will you be charged? Is there a monthly or annual fee for using your card? Are there late fees, and NSF fees?
- Interest rate. This is the big one. Be sure you understand the interest rate on cash advances and purchases.
When you read and understand the terms, you will understand what you are paying, which will probably encourage you to take steps to eliminate credit card debt.