As explained at the beginning of this chapter, credit costs money; therefore, you must conduct a cost/benefit analysis before making any major purchase. While most people consider credit costs, others simply ignore them and eventually find themselves in financial difficulties. To help you avoid this problem, each of the following organizations has a home page on the internet.

Debtors Anonymous offers financial counseling to debt-ridden consumers. (www.debtorsanonymous.org)

Bankrate provides rate information for mortgages, credit cards, auto loans, home equity loans, and personal loans. (www.bankrate.com)

Action items:

1. Choose one of the above organizations and visit its website and gather information about the costs of credit.

2. Prepare a report that summarizes the information the organization provides. Finally, decide how this information could help you better manage your credit and its costs.