All of us can get into credit difficulties if we do not understand how and when to use credit. This chapter identifies major sources of consumer credit—commercial banks, savings and loan associations, credit unions, finance companies, life insurance companies, and parents and relatives. Next, in determining cost of credit, we emphasize the finance charge and the Annual Percentage Rate (APR). Then we show how the cost of credit can be determined by calculating interest with various interest formulas. In dealing with your debts, we discuss the Fair Debt Collection Practices Act, consumer credit counseling, and the serious effects of debt. We describe the various private and governmental sources that assist consumers with debt problems. We explain the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Finally we explain and distinguish between the Chapter 7 and Chapter 13 bankruptcy laws to assess the choices in declaring personal bankruptcy.