The cost of credit depends on who you borrow from your credit history, how much you borrow and how long you take to repay it. Credit costs will vary from lender to lender. Before you borrow, compare the costs at several places.

Credit Card Debt	$ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+
Other Unsecured Debt	$ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+
Number of Creditors	Select One 2 3 4+
Status of Bill Payments	Select One Up to Date About to Fall Behind 1 Month Behind 2 or More Months Behind
I want to	Select One Eliminate My Debt Consolidate My Debt Seek Advice
Own a Home?	Yes  No

At a given interest rate, borrowing a smaller amount of money will result in a lower overall credit cost to you. So, a larger down payment lowers the total amount you will have to pay in finance charges.

The longer you take to repay your debt, the more you will pay. The cost will vary with how long you take to pay. Try to take the shortest repayment period you are able, and make the highest monthly payments you can safely afford.

Credit Worthiness

Your credit history shows your ability and willingness to repay a debt. It is measured by your record of paying bills. It is determined by how prompt and reliable you have been in making past credit payments. A good credit history helps you qualify for future credit and may also help you get credit at a lower cost.

Can I Afford It ?

Let's say you really want a new range---but you don't have the money for it---what do you do? Do you borrow the money? Or, do you wait until you can save some money and buy it later? Consider these basic guidelines when thinking about borrowing money.

• Use the 20 percent rule. Your total debt load (except for your mortgage payment) should not exceed twenty percent of your yearly after tax income.

  Caution!!! This maximum may still be too high of a maximum with some families, such as those with an uncertain job future or a low income.

• Use the "Credit Signal Light" worksheet to help you. Write down how much money you bring home monthly. Multiply the amount by .20 for the maximum amount of credit you can afford. Compare this to your current monthly payments. Now decide---can you really afford to purchase that new range?

• How much credit you use is really a personal decision, but do look at your needs realistically. Credit is just one part of your spending plan. Consider carefully before obligating any of your future income. .