The APR, or Annual Percentage Rate, is the interest rate placed on credit cards.  Recently, many banks have sent out notices notifying customers that their APR will be raised as of the first of March.  The reason for this change is to “maintain profitability.”

How does the APR affect your monthly bill?  This depends in large part on the type of payment you make each month.  For example, if you just pay the minimum amount due each month it can take years before you pay off the entire debt.  Why?  Take a look at your credit card statement.

How much is charged in interest?  How much is taken off the principal amount?  Let’s assume that you pay a minimum amount of $20.00 each month.  If the APR is more than 15%, you will be paying off this debt for the next six years or more.  Moreover, if you miss a payment the APR will increase.

There has been much talk about identity theft over the past several years, but it is not a new concept. Thieves have been stealing the personal information of others to use for their own benefit throughout history. But in today's electronic age, identity theft has become rampant.

Identity theft is a form of fraud. It involves the use of someone's personal information or documents by the fraudster, usually to obtain money in some way. But there are also other ways that a stolen identity may be used. Some illegal immigrants steal identities to prevent deportation. Criminals may use stolen identities to prevent their crimes from showing up on their records. Identity theft has even been used to obtain medical care and prescription drugs.

How Are Identities Stolen?

In the days before computers, identity thieves often resorted to dumpster diving. That means that they stole victims' trash and went through it, looking for information they could use. They looked for such things as canceled checks with the victim's bank account number, address and phone number, and discarded credit card offers. Some identity thieves also stole mail in an effort to find personal information. These techniques are still used today, but are usually less fruitful thanks to consumer awareness.

Learning to use credit responsibly is important for every young adult. If one starts out on the right foot, he is less likely to let debt get out of control than if he starts charging everything in sight as soon as the opportunity presents itself. But at what age are credit cards appropriate?

According to credit card companies, allowing teens access to plastic is a good thing. They say that learning about credit with parental supervision gives them a better chance of managing it successfully when they’re on their own. But we all know that credit card companies have a financial stake in getting their cards into the hands of as many people as possible.

Still, there is a lot of talk about the merits of providing teenagers and college students with credit cards. Here are some arguments on both sides of the issue.

Pros

* Credit cards come in handy in an emergency. If your child’s car breaks down, for example, a credit card could be used to pay for the tow bill and repairs. And if you have a college student who is far from home, you can rest easy knowing that he has quick access to funds if needed.

Credit cards have gotten a bit of a bad rap. With so many people drowning in credit card debt, and with penalties and fees piling up to keep them there, it’s not too hard to understand. But that doesn’t stop us from applying for cards and using them.

Credit cards themselves are not so bad. In fact, they have many good points. They make it possible for us to buy things and use them right away, and make payments later. They keep us from having to carry large amounts of cash when we plan on making big purchases. And they provide a way to build up our credit scores. When used responsibly, they can be an asset rather than a liability.

Unfortunately, many consumers fail to maintain control of their charging habits. They use their credit cards to make impulsive purchases. They pay only the minimum payment each month, resulting in greater interest charges. They keep their cards perpetually maxed out. Or they obtain multiple cards and juggle debt instead of paying it off.

To get the most out of credit cards, it’s best to start out on the right foot. Shopping around for a card with low interest and no annual fee will help minimize costs from the get-go. And if you resist the urge to go out and buy anything and everything you want, you can avoid accumulating an overwhelming amount of debt in the first place.