Smart Living: Perks of plastic
By: Ivanhoe Broadcast News
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Holiday shopping is in full swing, but in tough times, more Americans are cutting up their cards to make sure their gifts are paid in full.
Just as there are some items you should never put on your charge card, there are others you should -- if you can pay it off on time.
Big-ticket items like appliances or electronics should almost always be purchased with plastic. It makes you eligible for extended warranties. Some card companies even offer price protection, which means if you find what you’ve bought at a cheaper price, you could get reimbursed for the difference.
Using your card for travel could get you vacation perks and your card company might offer you travel, car rental and lost luggage insurance.
Finally, if Christmas dinner is at your house, charging services like landscaping or construction could give you extra protection if the work is sub-par. Merchants who accept credit cards agree to the terms set by the card companies, and these companies can charge back disputed purchases if you’ve been cheated.
The average U.S. household carries $15,000 in credit card debt. If you pay the minimum, it will take you 36 years to pay it off and cost $23,000 in interest.
Every Monday and Thursday YNN's Jennifer Borget offers lifestyle reports that help families make decisions about careers, finances, nutrition, fitness and parenting with our
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