ANSWER TO THE QUESTION OF HOW TO

AFFORD ALL THOSE HOLIDAY GIFTS. BEFORE

YOU WHIP OUT THE PLASTIC, A UNIVERSITY OF

LOUISVILLE FINANCE PROFESSOR

RECOMMENDS READING THE FINE PRINT ON

YOUR CREDIT CARD STATEMENT OR

APPLICATION. AS GIL POLSTON REPORTS, YOU

MAY BE FACING ADDITIONAL FEES.

---------------------------------------------------------------

THE LURE OF LOW CREDIT-CARD RATES

TEMPTS MANY OF US TO OVERINDULGE

DURING THE HOLIDAYS. IN SOME CASES,

CREDIT CARD COMPANIES ARE LOOKING FOR

JUST THE SLIGHTEST EXCUSE TO RAISE YOUR

INTEREST RATES AND FEES. FOR EXAMPLE,

SOME COMPANIES WILL RAISE YOUR OVERALL

INTEREST RATE FOUR OR FIVE POINTS IF

YOUčRE JUST ONE DAY LATE WITH A

PAYMENT.

OUT: ...credit card companies (12 SECS)

TO MAKE MATTERS WORSE, YOU'RE NEVER

NOTIFIED WHEN CREDIT CARD RATES GO UP

OR YOUR FEES CHANGE - THE INFORMATION

IS JUST TACKED ON THE SMALL PRINT OF

YOUR CREDIT CARD STATEMENT. RAY SAYS

CREDIT PROVIDERS ARE STARTING TO

TIGHTEN THEIR BELTS BECAUSE TOO MANY

PEOPLE AREN'T PAYING THEIR BILLS.

THE DEFAULT RATE ON CREDIT CARDS IS AT AN

ALL-TIME HIGH. RAY SAYS YOU CAN BE A

GOOD CREDIT CONSUMER BY CAREFULLY

LOOKING OVER YOUR STATEMENT EACH

MONTH, AND PICKING UP THE PHONE IF YOU

SEE NEW FEES OR A HIGHER INTEREST RATE.

IN: A huge portion...

OUT: ...really works (14 SECS)

RAY ALSO SUGGESTS CALLING IF YOU CAN'T

AFFORD TO MAKE THE MINIMUM PAYMENT ON

YOUR CARDS. CREDIT COMPANIES DON'T

WANT YOU TO DECLARE BANKRUPTCY, SO

THEY'LL PROBABLY WORK WITH YOU TO

DEVELOP AN ACCEPTABLE PAYMENT PLAN.

(SIG-OUT)