Beware of Holiday Loan Traps

Week of November 03, 2008

In the midst of these tough economic times, you may consider skipping a loan payment or credit card payment. However, not paying on time may result in more interest paid by you in the long run. When a payment is skipped and not paid toward the principle, you end up with a higher balance as the accrued interest compounds on the previous outstanding balance. To compute the true cost of skipping credit card and loan payments, use the calculators. Also, avoid holiday loans through finance companies and Internet military loans that carry high interest rates. If you must use credit, avoid high-interest retail stores. For more information or to speak with a financial counselor, call your local Army Community Services office.

To learn more about personal finances, visit the Military.com Finance Center.