WASHINGTON, Aug. 15 — Everyone agrees that credit card disclosures could be simpler and easier to understand. While federal regulators complete the process of updating credit card disclosures, the American Bankers Association has developed a free resource to help consumers make informed choices about credit cards.

"Guide to Credit Cards" (http://www.aba.com/aba/documents/press/ccguide_62207.pdf) is available on ABA's Consumer Connection Web page at http://www.aba.com. The new publication is designed to help cardholders and applicants better understand the specifics of credit card use, improving their ability to successfully benefit from the ease and convenience of this financial tool.

The guide covers a range of important but often confusing topics, providing clear and easy-to-understand answers to such questions as:

— Why are there different annual percentage rates and how do they work?
— What exactly are grace periods, and how do they work?
— How are payments allocated to outstanding balances?
— How can a consumer choose the right card?

The guide also covers other important topics, such as late payments and minimum payments, while offering important tips for consumers to help them successfully manage their credit and avoid financial hazards.

"Credit cards empower consumers by allowing them to safely and securely make purchases without having the risk of carrying large amounts of cash," said Nessa Feddis, ABA senior federal counsel. "Ensuring consumers are able to make informed decisions about their credit card activity is a paramount responsibility for card providers. This guide provides an overview of the crucial fundamentals that everyone with a credit card should know."