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Often you will encounter the acronym "APR" on your bill. What does it mean?

Annual Percentage Rate. Annual Percentage Rate is perhaps the most important factor to consider when selecting a credit card. It indicates how much the bank is going to charge you for the privilege of using a credit card. Shop around and get the best rate, then make sure it's not just an introductory rate that will shoot up after 6 mos. Don't be afraid to ask questions BEFORE buying that widescreen TV!

Debit cards are a little safer to use than credit cards for bill paying but they do have drawbacks. With a credit card, you must provide a signature when making a purchase. What do you have to provide when paying with a debit card?

PIN (personal identification number). A clerk may ask you for additional ID, but will always ask you for your PIN whenever you use a debit card. You should never write your PIN anywhere in your purse or wallet. To be safe, choose a PIN that you can easily commit to memory. Or bring cash!

The organization that knows all about your buying, borrowing and payment history and issues reports to your creditors is called ___________.

Credit Bureau. In the US, credit bureaus have become more and more influential as the country becomes more and more of a cashless society. You are legally entitled to inspect your credit report and respond to any inaccuracies you may find therein. Under the terms of the Patriot Act, your personal credit history may indeed be expropriated by government agencies.

The bank uses this term to describe the payment of bills by direct drafts from your checking account.

Electronic funds transfer (EFT). This can be a handy way to pay bills. Sometimes you can get a lower interest rate on a loan by choosing this option, and there's no envelopes or stamps to deal with. But unless you have a steady job, and a good cash flow (or overdraw account), it can be risky, because you will not have the reminder of a monthly statement arriving in the mail.

Help! Another acronym! LOC stands for Line of Credit, a special account that's attached to your checking account. If you have big expenses one month (eg, high utility bills in winter, car repair expenses) the line of credit will place money in your checking account to tide you over. If you don't have this account, your checking account may become....

Overdrawn. Do whatever you can to avoid overdrawing a checking account. Bank charges for overdrawn accounts are exorbitant. And yes, it is usually unfair, since the last thing you need if you have money troubles, are more expenses. Banks can be heartless this way, so curb your expenses as much as possible to avoid this unforturnate situation. Draw up a budget, use thrift stores, sell your unwanted stuff, get a second job. Then keep careful records of your spending. You don't want to overdraw!

You have been really busy and under a lot of stress. You haven't gotten around to balancing your checking account for awhile. You write a check at the hardware store for contact paper, a new garden hose and a trampoline. Ten days later, you receive a letter from the store stating that you still owe them for the merchandise plus a fine of $25, and they want you to come back and pay in cash. What has happened?

Your check bounced. Checks bounce when they are presented for payment to the bank and there are insufficient funds to cover them. This causes your account to become overdrawn (see question 5, above).

Some financial counselors say that this important monthly payment should not exceed 1/4 to 1/3 of a person's monthly income.

Rent or mortgage payment. This is a good recommendation. It is tempting to buy (or rent) the biggest and fanciest house you can get (and home lenders are often willing to finance a larger home than you can realistically afford). But when you add in transportation, food, clothes, utility bills and other expenses, it can be tough to make that payment. You don't want to default on a mortgage payment, so your best bet is caution. Be realistic about the kind of housing you can afford. It all goes on your credit record (see Question 3).

You have questions about your monthly statement so you call your loan company, bank or credit card company. You are shuffled from one department to another and the phone menu is endless. You're running out of patience. What shortcut will often take you directly to customer service?

Pressing "0" on your phone keypad. Even if the "0" option is not given as a menu option (or it is presented later on), you can often get a CSR (customer service representative) by simply pressing "0". If that doesn't work, try "9". If that doesn't work, well, go ahead and scream.

There are three factors to consider when making a major purchase (eg, a home or car loan). These related factors will determine how much you will ultimately pay for the item. They are...

Term, Interest Rate, Monthly Payment. Consumers are often persuaded by highly sophisticated advertising to buy what they cannot afford and do not need. Instead of looking at the bottom line: term, interest rate and monthly payment -- and cautiously weighing out actual costs against their income -- they are swayed by advertising, packaging and marketing appeals. Let the buyer beware!

What does it mean when a company asks you to "remit the payment" by the due date?

Send them the money on time. "Remit" means to send. Billing is usually done in 30 day cycles. If you want to make sure you won't be charged a late fee, send the payment as soon as possible after receving the statement. And always send a check or money order with the account number written on it, never cash.