Q. What does the "variable interest rate" on my credit card bill mean? Why can they raise my interest rate?

A. Credit cards have an annual percentage rate (APR), which can be fixed or variable.

• Variable rate: Allows the lender to change your APR based on external influences such as the Prime Rate (the rate credit unions give to their best members). Variable rates can change without prior notification.
• Fixed rate: This is deceptive because the rate actually can change. Missing a payment or going over your credit limit could give your issuer license to raise your rate. You must get at least a 15-day notice before your rate changes.
• Teaser rate: The initial interest rate lenders advertise to entice you to sign up. Special promotions that offer "0% APR" are for a limited time – after that, the rate will likely increase.
• Get irate: If your bill doesn’t look correct, check your credit agreement. Then contact your issuer. Try consumerreports.org for more help or contact the Comptroller of the Currency to investigate unjust interest rate raises at 1.800.613.6743.

Q. Groceries are expensive and take up a huge chunk of my budget. Am I doing something wrong?

A. You might not be doing anything "wrong," but you can probably cut some corners. Experts allocate 10 percent of a budget for food, so try these tips to keep your belly full without emptying your wallet:

• Eat what you already have. Then make lists of what you will actually use.
• Healthy can be cheaper. Water, fruit, vegetables, rice, and oatmeal generally cost less than packaged and processed foods like potato chips, boxed cereal and soft drinks.
• Avoid pre-cut or washed produce. Do it yourself.
• Learn to cook and ditch the frozen pizzas.
• Buy generic.
• Share basics with roommates: toilet paper, olive oil, coffee.
• Visit thegrocerygame.com to find the best current sales in your town instead of cutting coupons.
• Eat before you go to the grocery store to avoid impulse buys.
   

Editor's Note: We can't make you rich, but we can answer your questions about money matters. Send your questions to editor@brassmedia.com or brassmagazine.com and we will try to squeeze in as many as we can.