It's a growing issue-American's overextended on credit....so how do you protect yourself?

You signed up for that in-store credit card to save ten percent, but wound up paying twenty percent extra in interest because you couldn't pay it off in time. And that was just the first consequence of a quick credit decision.

Tonight, Abby Wuellner tells us about the other, more long-term problems that can come of those choices...

It seemed like such a good idea at the timejust put it on the credit cardyou'll pay it off later... But later comes and goesthe money isn't thereand you'd be amazed at how many ways you can feel the effects of missing a few payments... (Deb Nelson, Village Family Service Center) "Credit is so important as far as if you're trying to find a place to live, even renting." When you go to rent an apartment, without fail, the manager will check your creditsee just how reliable you will be as a tenant..

(Deb) "What affects your credit report: being past due on any sort of credit obligations, credit card installment loan, those things will affect your credit." Also, if any agency has ever sent you to collections for not paying a bill, that will show up...and perhaps keep you from renting independently

So how do you keep those problems to a minimum? Deb Nelson, a financial advisor with Village Family Services, has some suggestions

(Deb) "I think having one credit card or possibly two credit cards is usually your better option. You also don't want to get close to your credit limit, as far as maxing it out." But if you already have several cards in your nameand want to make sure your credit is in good shape, you can check your credit report online for free at www.annualcreditreport.com. Three agencies track credit, and you are entitled to a single report from each once every year.

(Deb) "You can actually pull one of the credit reports maybe one month, go back in and three months later pull the other credit report that time for free. Then, maybe three months later, you could go in and pull the third credit report agency the third time. So, actually, in reality, you could pull your credit report three times in a year for free." That way, you can check and see just how good an idea it really was to pay with credit at the time..

Abby Wuellner, KX News.

Your credit report will show how exactly what credit you have in your name, and what you owe to different agencies. The reports can prove helpful tools in guarding against identity theft. If you see any problems with your report, then you can dispute it through the reporting agency. watch the video | save this article / add to your favorites list