Put 2 credit cards to work and save money over time

October 27, 1991|By Glenn Burkins | Glenn Burkins,Knight-Ridder News Service

Which credit card would you prefer -- one with no annual fees and a high interest rate, or one that has an annual fee but a lower interest rate?

According to Kiplinger's Personal Finance magazine, you actually may need both.

Use the high-interest card to charge items you plan to pay off in full during the card's grace period. As long as you don't carry a balance from one month to the next, no interest charges will apply.

The card with the lower interest rate -- probably about 14 percent -- can be used to buy items that you can't pay off in one month.

Whether you have one card or two, the best deal is to pay cash whenever possible.

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Education pays. And here's proof: High school dropouts earn an average of $458 a month, while high school graduates average )) $967, according to the U.S. Census Bureau.

People with four-year college degrees earn an average of $1,804, and those with master's degrees pull down about $2,317.

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You don't have to be a rocket scientist to buy stock or bonds through a mutual fund. But understanding a mutual fund prospectus does take some effort.

The Investment Company Institute, a trade association for the mutual fund industry, has a free booklet that walks you through a typical prospectus.

To get a copy, write to: Prospectus, ICI, 1600 M St. N.W., Suite 600, Washington, D.C. 20036.

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