Credit Card Resources: December 2006

Small Businesses Have More Credit Card Debt

A newly released report by the Small Business Administration (SBA) finds that small businesses have acquired more outstanding debt. From June 2004 to June 2005, both the number and dollar amounts of small business loans rose 25 percent. Most of it was credit card debt.

All commercial lending institutions accounted for the numbers, not just SBA loans and the increase in business debt was especially prevalent in the smallest businesses, under $100,000. Credit cards accounted for much of the debt.

Credit is essential for buying a small business due to the capital needed to buy and maintain inventory, hire employees and have funds available for future growth, but credit cards provide the most expensive form of credit, along with having unnecessary risks.

When using personal credit, enough must remain in case of emergencies, or not only personal but business stability may be jeopardized and everything would be lost should the business fail. The loan would need to be repaid and the loss could include both personal and business assets.

Shoppers’ holiday debts likely to last until March

NEW YORK It's known as the "holiday debt hangover," and this year it could be a doozy.

The phrase refers to the debt - mainly credit card bills - that consumers accumulate as they shop for Hanukkah, Christmas and Kwanzaa.

A new poll by Consumer Reports magazine, which is published by the nonprofit advocacy group Consumers Union in Yonkers, N.Y., found that 23 percent of those surveyed said they will not pay off their holiday debt until March or later.

Holiday Credit Card Pile-Up

First, the good news: According to a survey by Consumer Reports, more than three out of four holiday shoppers planned to buy at least some of their gifts with cash. That's not just good news -- it's great news for the average household budget.

Now, the mixed news: About half of the people surveyed plan to put some gift purchases on their credit cards. That's fine for everyone who plans to pay off their cards when the bills arrive in January. Almost 60% of us deserve an extra trip under the mistletoe for having such financial savvy.

However, about one-fourth of holiday spenders using their credit cards this month do not plan to pay off their bills until March or later. That means interest charges will pile up, especially if the charges pile onto pre-existing balances. How much will those gifts cost consumers in the end? Let's run the numbers.

Read more at: Holiday Credit Card Pile-Up

Play The Great Credit-Card Shuffle!

Over the past year, around 8½ million people have taken advantage of the 0% balance transfers on offer from credit-card companies.

A recent survey from MoneyExpert reckons that about a quarter of all 33 million credit cardholders have shifted existing balances to a new credit card in the past twelve months.

They've done this in order to enjoy an extended interest-free period which can last a year or more. This research reveals that cardholders have transferred an average of £764 apiece, with the total adding up to a mighty £6½ billion, or more than a tenth of our total card debt.

Google Steps More Boldly Into PayPal’s Territory

SAN FRANCISCO — Steven Grossberg, who sells video games online from his home in Wellington, Fla., recently sent an enticing offer to 20,000 customers: $10 off any purchase over $30 using a new payment service, Google Checkout.

Traffic on his site more than tripled, and best of all, he said, Google picked up the tab for the promotion.

“I think it’s fantastic,” he said. “I’m selling the product. Google is getting tons of customers to sign up for Checkout. Customers are happy because they are getting a monster deal."

And Google is not charging merchants any processing fees through the end of 2007.

As a result, getting customers to use Checkout will increase profits, Mr. Grossberg said.

Spinoff Set by Summer for Discover

He built it. Now he is taking it apart.

John J. Mack, in his boldest strategic move since he became chief executive last year, said yesterday that Morgan Stanley would spin off its slow-growing credit card unit, Discover.

For Mr. Mack, a mastermind behind the 1997 merger with Dean Witter, Discover & Company that brought Discover into the Morgan Stanley fold, the decision is a tacit recognition that the firm’s future success lies with its traditional heart, its lucrative trading and investment banking business.

The results the firm released yesterday underscored that reality. Propelled by trading and banking, Morgan Stanley’s operating earnings rose 26 percent in the fourth quarter, which ended Nov. 30. For the year, earnings rose 44 percent.

Yet while the 2006 profit of just under $7.5 billion was a record for Morgan Stanley, it lagged the $9.5 billion generated by its archrival, Goldman Sachs, whose profit rose 76 percent for the year.

Read more at: Spinoff Set by Summer for Discover

My Credit Card Pays Me Cash

There's responsible credit card usage, and then there's smart credit card usage. Permit me to draw some distinctions.

If you're only charging sums that you can afford to pay, you're being responsible. If you're paying off your credit card bill in full each month, you're being responsible.

If you're a smart credit card user, though, you'll have done some digging to find the card or cards right for you. For example, if the sad fact of it is that you're carrying credit card debt, you'll want to have a card with as low a rate as possible.

If you travel far and wide frequently, you may want a card that rewards you with miles. And if you simply use your card for lots of purchases, while paying it off regularly, you should perhaps focus on finding a card that offers you compelling rewards -- in the form of cash or rewards.

Read more at: My Credit Card Pays Me Cash

Card swapping sums up debt culture

Such is the state of Britain's debt culture that the nation swapped £6.5 billion in balance transfer deals this year, new figures have revealed.

Research from Moneyexpert.com shows that around eight million people transferred an average of nearly £760 each, despite credit card balance transfer fees as high as three per cent.

This means Britons looking for a cheap credit card could pay £150 on a balance of £5,000, though long-term savings could be possible through such deals.

Read more at: Card swapping sums up debt culture

Microsoft, ICICI Launch Credit Card

Microsoft Entertainment and Devices Division have announced the launch of the Xbox 360 and ICICI Bank co-branded credit card in partnership with ICICI Bank.

With every Xbox 360 and ICICI co-branded credit card the customer would get a welcome pack that carries various offers and benefits from leading brands through the designated dealer outlets spread across major cities in the country.

Credit cards drive up small-business debts

Credit card debt is not just a concern for consumers. According to a new report by the Small Business Administration, plastic is one of the main reasons the number of small business carrying debt increased 25 percent last year.

From June 2004 to June 2005, the number of businesses with outstanding loans under $100,000 jumped from 15.2 million to 19 million. A full 70 percent of that figure was due to credit card debt, the study found. Despite the dramatic increase in numbers, the total dollar amount increase was a meager 1.9 percent -- suggesting a growing number of companies are using credit cards to cover smaller expenses.

Despite the slowdown in other areas of small business lending, the ''small business credit card market continues to be quite dynamic,'' said Chad Moutray, the chief economist for the SBA's Office of Advocacy.

Credit card fees are piling up for holders

Rene Rodriguez of Juana Diaz, Puerto Rico, paid late on his August credit card bill for the first time in years. It was a simple oversight: He misplaced his bill.

But the fees Rodriguez was hit with were hardly simple. First, Citibank charged a $39 late fee. And even though he paid his full balance, the bank dropped his interest-free grace period.

Then it began assessing finance charges at a 24% annual rate, compounding daily. All told, it cost Rodriguez nearly $100.

Say it with plastic

Gift cards once seemed like such a Christmas cop-out. These days, they carry more weight than a sleighful of shopping-mall Santas.

Thanks to a few flashes of marketing magic -- and the increasingly difficult challenge of finding the right present -- gift cards have gained an unprecedented appeal.

Target stores grabbed the attention of the tech crowd this year with product-themed cards that light up and make sounds. Web sites are offering more cards that can be personalized with photos and names.

Starbucks is getting a serious revenue rush from its re-loadable coffee cards, and this year even Wendy's has decided to capitalize on our penchant for plastic and burgers.

A guide to understanding credit-card fine print

If you're sick of "Jingle Bells" and "Deck the Halls," Consumers Union has a new tune to get stuck in your head.

"It's Always Christmas Time for Visa," an animated music video that can be found at www.creditcardreform.org, is described by the organization as a "lighthearted take" on credit card fees, interest rate increases, and mind-numbingly complex and oh-so-tiny fine print.

There's nothing lighthearted about being slammed by $30 fees and 30 percent interest rates. So it's no wonder young people feel burdened by their credit card bills.

Credit card points offer little reward

I don't know about the rest of you, but I am accumulating a fortune this holiday season.

No, I am not a retailer, pulling in consumer cash from the sales of my Barbies, fruitcakes, Tickle Me Elmos, power tools and Playstation VIIs.

No, I am not a bell ringer, collecting the nickels and dimes of generous shoppers heading in and out of the mall.

No, I am not an oil company executive, filling up on rising prices (since the minute polls closed on Election Day) for gas and heating oil.

No, I am not the guy who broke into your house, stole the gifts you already bought for your five kids and fenced them in Montreal. Although I know a guy ...

It Pays to shop for the Right Credit Card

TORONTO -- So, what's in your pocket?

Among other things, likely 2.5 credit cards, just like any other average Canadian, according to Scotiabank vice-president in charge of credit cards Dave Trafford.

Some may have less, some may carry a walletful but many could be carrying around the wrong kinds of card because of the sometimes bewildering variety available these days.

"So it really depends on what you're going to do with it when you use your card," said Trafford. "I think if you narrow down what you're going to use it for, then there's tons of options in the market, but it's going to narrow the list quite substantially in terms of the type of card you're looking for."

Put simply, credit cards are divided into those where you can carry a balance, those where you can't, and cards that offer rewards and those that do not.

Credit card fees can suck you in

René Rodríguez of Juana Diaz, Puerto Rico, paid late on his August credit card bill for the first time in years. A simple oversight: He misplaced his bill.

But the fees Rodríguez was hit with were hardly simple. First, Citibank charged a $39 late fee. And even though he paid his full balance, the bank dropped his interest-free grace period. Then it began charging interest, compounding daily, at a 24% annual rate.

All told, it cost him nearly $100. The policy "is perplexing," Rodríguez says. "It's probably somewhere in the contract, and whether it's fair or not, once the company puts it there, you're stuck."

Read more at: Credit card fees can suck you in

How to escape card debt

Credit card debt is like mold: The longer you ignore the problem, the more wildly it grows.

If you're a twentysomething, you may have put tuition or books on your credit card while you were in college.

Or maybe you charged your rent or groceries to your card. Now you're swimming in a pool of high-rate debt. And that debt has likely grown more costly as short-term interest rates have risen.

SunTrust cuts credit card ties to BofA

The largest bank still issuing credit cards through Bank of America Corp. is moving to a new partner.SunTrust Banks Inc. of Atlanta said it would sever ties with a division of the former MBNA Corp. that issues cards for other banks.

Bank of America acquired MBNA in January, drawing SunTrust and other MBNA customers including Wachovia Corp. into an unwanted relationship with a retail banking competitor.

Wachovia ended the relationship and started issuing its own cards this summer.

Playing the card game

When you have finished putting up your Christmas cards, turn your attention to the plastic variety and work out how you're going to pay off your festive spending.

Credit cards will take a battering this year, with an estimated £11.4bn being spent on them this month, according to payment trade body Apacs.

In an ideal world, this would all be on credit cards offering 0% interest deals until well into 2007. But for many of us, these debts will start racking up interest before the January sales start.

MasterCard Offers Branded Gift Card

PERHAPS MORE NOVEL THAN A gift check, now any business can create a co-branded credit card to be given as a holiday gift or incentive under a new program launched by MasterCard Worldwide.

Business owners or managers can log on to the mastercardgiftcards.com Web site and personalize prepaid gift cards in denominations ranging from $10 to $500 with their company's logo and a personal message such as "congratulations," "happy holidays" or "thank you" to the recipient.

The Purchase, N.Y. credit card issuer launched the co-branded prepaid gift card program in conjunction with KeyBank, and is now analyzing how to advise other bank customers on how to market the product.

Citing the growing popularity of prepaid cards as gifts, Bruno Perreault, group head of global small business and mid-sized enterprises at MasterCard Worldwide, said the opportunity to co-brand with the credit card issuer is a draw to some businesses. "We've even had some very large companies find us through a search engine and buy hundreds of cards," he said.

"Unfair" Credit Card Rate Hikes

If you want to feel good about the credit card industry, consider reading an article other than this one.

If you'd like to know more about the state of the credit card world, read on. I'd like to share some interesting statistics on rate hikes I came across, from Consumer Action's 2005 Credit Card Survey. The folks at Consumer Action address the topic by saying:

Read more at: "Unfair" Credit Card Rate Hikes

10 Years and 7 Months To Repay a £360 Credit Card Debt!

If someone told you that it would take you 10 years and 7 months to repay a credit card debt of a mere £360, you’d justifiably probably think they had been enjoying too much of the festive spirit.

However, if you are the sort of person who is happy merely paying off the minimum balance on your UK credit card each month, then according to a new warning issued by the price comparison website moneysupermarket.com, that’s exactly how long it’s going to take you to repay the average amount we Brits will spend on our credit cards over the coming holiday season.

Don't swap equity for credit card debt

Q: I have a home equity line with a variable rate that is about 8 percent now. The balance is down to about $33,000. I have several credit cards with high limits, which are advertising low fixed rates until debt is paid. Should I move the debt into a couple of those?

A: You are not the first person to ask me this question, and my belief is that there are tens of thousands of homeowners asking the same question -- for good reason.

Until last year, we had become accustomed to interest rates falling, not rising. A huge number of homes were sold using an equity line or a mortgage that was pegged to an index.

Credit card companies read the papers, too, and they have responded with fixed, low-interest-for-the-life-of-the-loan products. I want you to focus on the definition of "fixed," before you act.

For Debt-Burdened Companies, An Alternative to Debt Consolidation

Should companies with debt and cash-flow problems turn to debt consolidation, as so many consumers have in recent years? Or is there another, possibly better option for these businesses?

While owners of debt-burdened firms might think debt consolidation is their best -- or only -- alternative to bankruptcy, there is much more to know, says Jim Herst, president of Performance Source Inc (PSI), a leading debt-settlement firm serving closely-held companies nationwide since 1963.

"For many business owners, collaborative debt settlement -- PSI's unique approach to solving commercial debt -- makes far more sense financially than debt consolidation or other services advertised as debt management."

Holiday Spenders Beware: Credit Card Hangover Coming

For many Americans, it's an annual tradition that goes hand-in-hand with eggnog and mistletoe — millions of people will charge millions of dollars on their credit cards this holiday shopping season.

Of course, it's easy to pull out the plastic in the weeks leading up to the holidays, but much more difficult when those bills come due in 2007.

More than 115 million Americans carry monthly credit card debt, with the average American debt around $9,000, according to Cardweb.com. And many of those paying off a high balance were surprised when the minimum monthly payment due rose during the past year.

Home Equity Credit Lines on the Rise in the United States

Home "Equity management is today's hottest opportunity," says Dave Savage of Mortgage Coach, a company specialized in counseling loan officers and mortgage brokers on how to match customers with the second mortgages that best fits them.".

One of the biggest drivers is the fact that there is more equity on homes than there has ever been." This means that if you have equity available in your home, now is a great time to cash in on this smart financial tool.

Gone are the days when a person’s greatest investment was their mortgage free home. There are so many mortgage products available to today’s consumer that our homes have become one of our most important financial tools. Not drawing on the equity in your home is wasting an opportunity to generate more equity and to utilize the financial security of a home equity line of credit.

Using credit cards is fine, but watch the fine print

Hidden charges, fees, interest rates can nip at your wallet. Know your card's terms

If you're sick of Jingle Bells and Deck the Halls, Consumers Union has a new tune to get stuck in your head.

It's Always Christmas Time for Visa, an animated music video that can be found at www.creditcardreform.org, is described by the organization as a ``lighthearted take'' on credit card fees, interest rate increases, and mind-numbingly complex and oh-so-tiny fine print.

There's nothing lighthearted about being slammed by $30 fees and 30 percent interest rates. So it's no wonder young people feel burdened by their credit card bills.

More than half of 18- to 24-year-olds asked about their holiday credit card bills were ``somewhat'' or ``very concerned'' about their ability to pay off the balances. One-third of 25- to 34-year-olds felt the same way in the survey, commissioned by the Consumer Federation of America and the Credit Union National Association.

Survey of Best Credit Cards for Holiday Shopping

Gift shopping for holidays can be a rewarding experience with wise use of credit cards. Credit-Land.com ranked top credit cards for holiday shopping.

Brooklyn, NY (PRWEB) December 11, 2006 -- More consumers than ever are planning to use credit cards as the preferred payment method for holiday gift purchases this year according to a survey by Credit-Land.com.

Credit-Land.com, the consumer's watchdog for credit card deals, analyzed and ranked credit cards to identify credit cards that offer the best consumer value for holiday shopping. Ranking formula is based on the combination of credit card benefits, cost of credit card use and consumer protection features offered by credit cards for holiday shopping season.

Based on the objective criteria outlined above, Credit-Land.com is pleased to announce the top 5 credit cards for holiday shopping are as follows:

Track credit spending to avoid January surprise

Many people like to splurge on gifts for the holidays. But Christmas cheer can turn to January panic when post-holiday bills fill the mailbox.

There are four warning signs to tell you when you're in too deep.

u Total monthly bills that exceed your monthly income.

The combination of your credit-card bills and regular monthly expenses (mortgage or rent, utilities and reasonable food expenses) should not consistently exceed your monthly take-home pay.

Get the most from the gift cards you give or receive

For some folks, engaging in hand-to-hand combat over a discounted flat-panel TV is a holiday tradition. Others would rather walk barefoot over hot coals than go anywhere near a mall between Thanksgiving and Christmas.

If you fall into the second category, you may be a fan of gift cards. They are easy to buy, don't need to be wrapped and always fit.

Americans spent more than $18 billion on gift cards last year, and nobody got hurt. The National Retail Federation estimates consumers will spend nearly $25 billion on gift cards this holiday season.

But the popularity of gift cards has led to problems. Some cards expire in as little as six months. Others come with inactivity fees that reduce the value of the card if it's not used within a specific period.

Canadian card market gets more crowded

The Canadian credit card market will get more competitive today as JPMorgan Chase & Co. teams up with a leading hotel chain to launch the first in what's expected to be a wave of new affinity Visa cards.

Chase Card Services, a unit of the New York-based bank, is expected to launch a program today with Marriott International Inc. that gives Canadian card holders accelerated access to rooms, upgrades and other goodies at the 2,600 hotel chain, including its 50 Canadian locations.

This is the first Canadian affinity card launch for Chase, and comes in the wake of its $2.3-billion purchase of Sears Canada Inc.'s credit card unit last year, a move that gave Chase a back office in Canada.

Take extra precautions with company credit card

It's always easier to spend someone else's money.

When it comes to a corporate credit card, though, don't become reckless. Otherwise, you could put your credit history at risk or be on the hook for charges.

In 2004, on average, organizations that used corporate cards gave one — often referred to as a travel or purchase card — to 23 percent of their employees, according to the most recent Corporate Travel Card Benchmark Survey conducted by RPMG Research Corp.

And not all companies run their card programs the same.

Shop around for credit card deals

This is not exactly a bold prediction: You probably will add to your credit card debt this holiday season.

Judging by Federal Reserve estimates, households today spend 20 percent more on debt repayment than a decade ago. That includes credit cards, loans and mortgages.

It's more important than ever to understand this ever-growing issue--and to figure out if you can work with your credit cards or if they're working against you.

Consider these facts:

-- Opening accounts at the cash register can hurt.

Sure, you receive the 10 percent discount. But you may be paying a higher interest rate down the line than you could have found by shopping around for credit. "Shoppers often don't ask about the terms," said Lucy Duni, director of consumer education for TrueCredit.com, a unit of the credit bureau TransUnion.

Read more at: Shop around for credit card deals

Credit card warning

Indianapolis- It is a warning from police that comes as thousands enjoy an evening on the town.

A spike in credit and debit card fraud. It's kept police investigators busy for weeks.

"Some were actually charging more than what the bill was and basically pocketing that money," said Tim Green, Assistant Chief of the Carmel Police Department.

Retail Decisions Provides Valuable Tips To Online Retailers

HAZLET, N.J.--(BUSINESS WIRE)--There is a swelling army of invisible thieves, perhaps the worst kind, who are pillaging online merchants via stolen credit and debit card information. Criminals use stolen credit and debit card information to fraudulently purchase items for resale.

According to Retail Decisions (ReD), a world leader in card fraud prevention and payment processing, during holiday season 2006, online purchasing activity is predicted to peak for major retailers, December 11th, between 2:00PM and 3:00PM EST.

If Black Friday was an early indication of how the number of transactions and volume of sales will increase, ReD is expecting to identify and stop greater volumes of attempted fraud this year. On a like for like basis, ReD saw volumes increase by 109% on Black Friday for its U.S. clients. Unfortunately, merchants without a sophisticated fraud prevention system will see fraudulent product purchases skyrocket.

Top Ten List of Worst Credit Card Company Practices

The following list will come as no surprise to those who have felt the sting of credit card industry practices– or listened to cardholders as they tell horrifying tales of exorbitant rate hikes, hidden fees, indecipherable cardholder agreements, or “bait and switch” marketing offers.

However, it bears noting that, while the credit card industry has long been attacked for its aggressive marketing and usurious interest rates, the situation today has escalated to the boiling point, and many Americans see no way out.

What is most disturbing of all, however, is the fact that the credit card companies continue to send the clear message that they simply don’t care about their customers.

E-shoppers not worried about security: survey

Gifts arriving on time is the biggest worry among online shoppers this Christmas, according to a new survey.

The survey, conducted by web and desktop security software provider Websense, questioned more than 1,000 people in three of the major shopping capitals in Europe -- London, Paris and Milan.

It found that while 75 percent of those surveyed were not confident about being able to identify a secure website, only one in four cited keeping their credit card and online banking information safe as their greatest concern.

Pick the right card

THE best type of credit card for your Christmas buying depends on how quickly you expect to pay it off...

IF YOU CLEAR YOUR CARD EVERY MONTH

Some reward holders who always settle their debt with an annual cashback based on the amount they spend. Egg Money repays one per cent. And if a balance runs over, the interest is typically only 7.9 per cent. Morgan Stanley Cashback - which applies 15.9 per cent interest - also pays one per cent as standard, but this rises to three per cent.

Check that! I'll pay cash instead

Cash or charge? It used to be the question of the season. Not any more. Now it's just assumed — charge.

There's a commercial currently running on television for Visa that shows a hectic cafeteria with everyone moving through the lines like clockwork and completing the circuit by swiping their credit or debit card through a machine at the end of the line.

But everything screeches to a halt and things go haywire when one poor guy pulls out his wallet and tries to pay with cash.

Read more at: Check that! I'll pay cash instead

The Easiest Way To Eliminate Your Credit Card Debt

Credit cards can offer customers the option of a quick solution to financial worries. However, many people who begin using credit cards often find it to be almost addictive.

For many people who begin using credit as a means of payment for expenses, credit card debt can become a huge problem. Credit card interest is usually the cause of this.

Naïve customers who sign up for credit cards and do not have experience with credit cards can be easily coerced into applying for credit cards with high interest rates that will eventually lead to extreme credit card debt.

What to Do When Your Credit Card Interest Rate Increases

"I was just informed the interest rate on my credit card is jumping from 10% to 29%. I've never made a late payment. I called my bank and they told me it's because some of my other credit accounts were highly utilized."

That's exactly what happened to my friend Kyle recently.

Because he was close to his credit limits on unrelated accounts his bank legally jacked up his interest rate nearly 200%.

Three Credit Card Cons To Avoid

I've recently acquired a new credit card, so I've been pestered with unwanted sales calls.

The issuer of my new credit card has called several times to offer me various add-ons and other bells and whistles. Of course, the aim of these sales calls is obvious: to boost its profits by flogging me over-priced and over-hyped products. Being a super-sceptic, I turned down every offer flat, because I know what poor value these additional products provide to customers.

For the record, here are two products which I kicked into touch, plus one other annoying charge which catches out millions of cardholders, the three Cs:

Read more at: Three Credit Card Cons To Avoid

Gift cards may come with some hidden costs

More people are giving gift cards to friends and relatives at the holidays, but those who give the cards and those who get them should be aware that they're not completely consumer friendly. Fees and expiration dates can trip up unwary users, and there can be problems replacing lost cards.

This year, Americans are ex pected to buy more than $80 billion worth of gift cards, a 20 percent increase from 2005, according to the TowerGroup research and consulting firm in Needham, Mass.

About three-quarters of the cards are issued by shopping malls, restaurants or retailers for use at specific sites. The rest are "universal" cards sold by banks and credit card companies that can be used in most places where debit and credit cards are accepted.

Credit cards face Xmas workout: Cannex

Forget interest rate rises - research says Australians will give their credit cards a workout this Christmas totting up more than $17 billion in the shops.

Research group Cannex said the sheer scale of spending means that the country's 13.1 million plus credit cards will swipe about $1,300 each.

This will be on top of what Australians already owe on the plastic fantastics - $37 billion or $2,820 per card.

MasterCard turns 40

PURCHASE, N.Y. - Robert W. Selander was a Harvard University graduate student in the early 1970s when he opened a checking account and began using his first credit card with a $200 spending limit.

Credit cards were such novelties then that he had a hard time using the card much beyond the area of the issuing bank.

“Remind yourself, that was when gasoline was 30 cents a gallon,” Selander recalled. “We had not gone through the first oil shock yet. For me, $200 was a lot as a grad student. It was like, ‘Boy, you want to be very thoughtful about how you use this.’ ”

High debt prompts credit card warning

KEEP an eye on your credit cards this Christmas, in more ways than one.

Spending on cards will rise by close to 25 per cent in the Christmas period to top the $17 billion mark for the first time, according to research house Cannex.

The sheer scale of useage could generate headaches on repayments and increase the risk of theft or fraud simply from greater exposure.

Cannex said the country's 13.1 million plus credit cards will swipe about $1,300 each.

Avoid credit card fraud this holiday season

NORRISTOWN - Looking for that perfect Christmas gift?

Purchase a shredder, preferably a cross-cut type, according to Montgomery County Consumer Affairs Director Mary C. Miller.

"Dumpster diving does not stop for the holiday season," said Miller, referring to those who go through another's trash looking for charge card numbers and other personal information that they can use to steal a person's identity.

Actually, there may be more identity theft during the holiday season, with crooks ringing up all sorts of charges with the stolen information because people, who are making more purchases, pay less attention to their credit card bills, said Miller.

Miller recommended that the public save their receipts and then compare them to their bills as they come in and then shred both after the bill is paid.

Starting Dec. 6, said Miller, stores and other merchandisers will only be permitted to print the last five digits of a credit card number on a receipt. Also, no credit card expiration date will be printed on receipts.

Airlines add credit-card incentives

Heated competition among airlines that have affiliated with credit card companies means consumers can get some great deals right now.

• US Airways' credit card, free for the first year, comes with 15,000 bonus miles after the first purchase plus 10,000 additional miles if you transfer a balance from another credit card, plus coupons for two $99 companion fares when a full-fare ticket is purchased, and access to the quickie lines normally reserved for elite and first- or business-class fliers.

• American is waiving the fee for the first year and offering 20,000 bonus miles, a $50-off certificate and a certificate for a free domestic companion ticket when you buy a full-fare ticket for $299 or more.

Be wary of credit card fine print

If you're sick of "Jingle Bells" and "Deck the Halls," Consumers Union has a new tune to get stuck in your head.

"It's Always Christmas Time for Visa," an animated music video that can be found at www.creditcardreform.org, is described by the organization as a "lighthearted take" on credit card fees, interest rate increases, and mind-numbingly complex and oh-so-tiny fine print.

There's nothing lighthearted about being slammed by $30 fees and 30 percent interest rates. So it's no wonder young people feel burdened by their credit card bills.

Read more at: Be wary of credit card fine print

You'll spend less if you leave cards at home

At this time of year, I'm duty-bound to deliver a fire-and-brimstone sermon about the evils of spending too much during the holidays.

Don't spend more than you can afford.

Make a budget!

Compare prices!

Leave your credit cards at home!

Obey, or find yourself in the personal-finance doghouse.

Of course, I don't have to commit all these deep insights to memory. As the holidays begin, I'm flooded with press releases on the subject.

So the other day, I waded through a raft of them to see if there were any tips that were not stupefyingly obvious. I found a few things worth mentioning.

Kiss That Plastic Bye-Bye

Fat credit card debt is as much a part of the holidays as Santa. Here's how to shed it and get your ho-ho-ho back

Every year at this time, Americans vow to shed two things: the extra pounds they pack on after feasting on too much turkey and the extra credit card debt they rack up on gifts for friends, family, and themselves. In fact, consumers are expected to ring up $135 billion more on plastic during the holiday season.

Yet before you head out to the mall this year, keep something in mind: Reducing debt is going to be harder than trying to drop a few unwanted pounds. After all, even if you, well, go cold turkey on shopping after the holidays, your debt will continue to grow, thanks to compounding interest.

Fund aids single mom struggling to pay bills

Her oldest child had tried to commit suicide and was in a hospital receiving treatment.

Her husband had left the Hyannis woman with her three young children the year before, leaving no indication of where he was going.

She had missed several days of work after her husband left to try and deal with her child's suicidal feelings, and she was eventually let go.

Out of work, she was having trouble making ends meet when NStar threatened to shut off her electricity for her inability to pay.

Survey: Plastic money gaining currency

A MALAYSIAN holds an average of three credit cards, a survey found, indicating a propensity to use more plastic currently.

The survey, by retail and shopping behaviour consultant, Ratera & van Galen Sdn Bhd, also said Malaysians swipe the plastic about 11 times a month, with an average monthly spending of RM1,624.

The average credit-card debt in the country stands at RM2,650.

Malaysians prefer credit cards from HSBC, Maybank and Citibank, scoring high marks in terms of customer satisfaction.

Retailer credit card due in 2009

DAVID Jones has said it does not expect to launch a general credit card, as part of plans to expand further into financial services, until about fiscal 2009.

David Jones (djs.ASX:Quote,News) chief executive Mark McInnes said the department store had been carrying out research, and would go through a process over the next 12 to 18 months to position itself to issue a general credit card around 2008/09.

"We have researched the international market thoroughly; we've researched the Australian market thoroughly," Mr McInnes said today.

"So we think we're well armed to begin those discussions, but we wouldn't see any launch much before 2008 calendar, 2009 financial year."

Read more at: Retailer credit card due in 2009

Growth in credit card debt eases

THE pace of growth in credit card debt slowed in the year to end October from 18% per annum to 16.9% as private sector credit growth eased to its lowest level since July 2005.

Central Bank credit figures said the adjusted annual growth rate fell to 27.7% in October, down from 28.1% in September. Credit growth hit a six-year peak of 30.3% in June.

Despite indications of a slow down, consumers and business are still borrowing heavily.

Read more at: Growth in credit card debt eases

Credit Card Resources

December 21, 2006