Balance Transfers Pay Credit Card Bills

Credit card debt is a headache for all of us. It is all very well when we are going around buying things with our cards.

However, we cannot afford to forget that we are running up a tab which will have to be taken care of sooner or later. Many people use their credit cards like this is their last chance to do so.

They seem to hang on to the illusion that credit cards are like free money. We automatically associate this attitude with the younger group of credit card holders.

However, older and supposedly more responsible people occasionally become guilty of this attitude. Of course, even those of us who use our credit cards sensibly occasionally do end up feeling overwhelmed by our credit card bills.

Read more at: Balance Transfers Pay Credit Card Bills

Credit card commercials glamorize going into debt

You don't have to be an economist to despair over the financial news we read these days. Recent business headlines have included the following: ''What to do if you can't pay mortgage on time,'' ''Housing downturn could lead to deep recession,'' and my favorite, ''Revised savings rate still nothing to brag about.''

That last story revealed that the annual rate of savings among Americans in 2006 was -- are you ready for this -- .04 percent. Translated into cash, that means we saved about half a cent for every dollar we earned. I'll grant you that times are tough but half a cent? At that rate, a household earning $50,000 a year would sock away a grand total of $20 a year. Don't spend it all in one place.

We are all saving significantly less money these days. Twenty-five years ago the savings rate in this country was about 11 percent, or 11 cents for every dollar we earned, 275 times as much as we save today. At that rate, our $50,000-a-year household tucked away $5,500 a year; or about $450 a month.

Read more at: Credit card commercials glamorize going into debt

Late payments on credit cards decline

WASHINGTON — Late payments on credit card bills dipped in the second quarter, while delinquencies on home-equity lines of credit climbed to a 51/2-year high, painting a mixed picture of how people are managing their debt.

The American Bankers Association, in its quarterly survey of consumer loans, reported Wednesday that late payments on credit card bills dropped to 4.39 percent in the April-to-June quarter.

That was down from 4.41 percent in the first quarter and was the lowest reading since the final quarter of 2005.

Read more at: Late payments on credit cards decline

Borrowing with bad credit

People with bad credit are becoming increasingly common in the UK, and with the huge levels of consumer debt that have dogged the UK over recent years it comes as no surprise that bad debt levels have rocketed and a rising number of individuals and households have found themselves with poor credit.

In the past having bad credit made life extremely difficult, as no lender would entertain the idea of letting someone with poor credit borrow money. This meant that those with poor credit would find it very difficult or even impossible to get anything from a car loan or mortgage to a loan or a credit card.

The good news is that things have changed over the years, and tougher competition amongst lenders coupled with increasing numbers of people with tarnished credit has means that lenders have had to start looking at filling this gap in the market by tailoring financial products to meet the needs of those with bad credit.

Read more at: Borrowing with bad credit

Getting Your Online Credit Card Application Approved Instantly

If you have surfed around on the Internet, you have no doubt ran across many different credit card companies, offering you cards at what they claim are the best in terms of interest rates and fees.

Credit card companies operate both offline and online, and you can even apply for your card directly through their website. Even though many people understand how this process works, there are some who do not.

There are a lot of credit card companies who can process your application online instantly, or within a few minutes. Keep in mind that it does not mean you can shop instantly, simply because you can not print out your new credit card and take it out to the store.

You can still shop, although you will not be able to use your new credit card – you have to wait until it is mailed out to you.

Read more at: Getting Your Online Credit Card Application Approved Instantly

Layman's Guide to Credit Card Monthly Statements Part 2

In the first part of this two part Layman's guide to credit card monthly statements, we learned about few very important terms that credit card companies use in their monthly statements. This second part continues the process further.

Finance charges

This section will contain the amount credit card company charges for using the credit card. There are few good credit card companies out there who won't charge you a penny if you are good at repayment and clear all your outstanding balances every month. Some are not so good and levy finance charge without giving any regard to your repayment record.

If you find that the finance charges are hitting you below the belt, you can ask the credit card companies to waive it, remember there is nothing fixed with the credit card companies, you can negotiate every bit if you have the right credit history and other credentials.

Read more at: Layman's Guide to Credit Card Monthly Statements Part 2

Is my child ready for a credit card?

As we head into holiday shopping season, you may notice that some of your favorite toys have a new plastic version — Credit and debit cards. The classic Monopoly game now comes with a debit card instead of all those little bills. Barbie has her own credit card in an electronic purse. There's even a Hello Kitty debit card!

But are these new-and-improved versions going to help you raise money savvy kids — or just the opposite? ‘Money’ magazine's Jean Chatzky and TODAY's Financial Editor has tips on how to deal with these plastic problems and helping your kids manage money.

We are already worried that we're raising a generation of children that don't know how to handle money. They don't seem to understand that financial resources are limited, so they spend more than they have and then look to mom and dad for a bail out. Part of the problem I believe is that they were raised in an era when money was largely invisible.

When I grew up, my parents took their paychecks to the bank and withdrew cash from a teller, which they used for purchases. Bills were paid from the kitchen table.

Read more at: Is my child ready for a credit card?

Deal yourself the right credit card

The credit card market is hotting up. Three big players, Halifax, Capital One and Citibank, are introducing new deals in a bid to woo credit-hungry customers. All three cards offer something above standard deals but whether any of them is right for you depends on your circumstances and how you use your card.

If you plan to spend on your card and cannot always pay off your balance each month, Halifax's Purchase Card offers a market-leading deal. As well as a 15-month interest-free period, customers are charged 0 per cent on balance transfers for six months – although a 3 per cent balance transfer fee applies.

After the interest-free period the card reverts to a typical APR of 14.9 per cent, which compares well with the average figure of 16.5 per cent, according to MoneyExpert.com, the price comparison service.

"If you're a big spender and want to avoid counting the cost of letting purchases sit on the plastic for too long, the new Halifax card is a safe bet," says Sean Gardner of MoneyExpert.

"Of course, spending too much on your card without paying it back is a dangerous game. So big zero per cent deals on purchases can turn out to be a red herring if you end up with a large balance at the end of the special deal. A charge of 14.9 per cent on a balance of £3,000, for example, will see you pay £447 in annual interest."

Read more at: Deal yourself the right credit card

Layman's Guide to Credit Card Monthly Statements Part 1

Every credit card holder gets a monthly statement by mail. This statement describes all your spendings, fees, important dates, current and outstanding balances with your credit card. Contrary to popular perception all credit card statements are not the same, they vary according to the credit card issuer.

Reading this monthly statement carefully and understanding every bit of it matters a lot for the credit card holder. In this two part article we take a look at various terms and facts mentioned in a typical credit card statement and what do they really mean for the credit card holder. Let us start.

Purchases/new charges

It will contain details of what all did you purchase or borrowed with your credit card in the previous month. Check this carefully. If there is an item which you didn't purchase or amount that you didn't borrow but is listed in this section, its time to act.

Read more at: Layman's Guide to Credit Card Monthly Statements Part 1

Benefits of Credit Card Debt Relief And Credit Card Debt Management

If you are one of the millions of Americans seeking relief from the pressing and increasing credit card debt, you will probably be interested on credit card debt relief and debt management solutions that can help you get rid of your debt.

The different solutions provide you with debt reductions but may affect your credit or finances in diverse levels and ways. Following is a small list of solutions and workarounds to your credit card debt problems:

Is Bankruptcy A Solution?

Bankruptcy is an extreme measure and the consequences of such process are devastating to your credit. A past bankruptcy remains on your credit history for many years even after it is discharged. Only two years after the discharge you have some kind of chances of getting approved for a personal loan and the terms will certainly not be too advantageous.

Read more at: Benefits of Credit Card Debt Relief And Credit Card Debt Management

6 Easy Ways to Jumpstart your Business With Credit Card Processing

Nowadays, engaging in any form of business will always involve credit cards in one way or another. These plastic money speeds up transactions.

We buy our stocks from suppliers using credit cards. In turn, we accept them as payments from our customers' purchases. Indeed, credit cards have gone a long way. It spells convenience, flexibility and ease of use for our business.

But let's accept it. Despite all its touted advantage, credit cards pose some degree of risks. One can steal a credit card that belongs to another and use it to purchase items from us. Stealing credit cards is very easy, after all. Then here's the sad part.

The real card owner realizes the bogus transaction and contests the purchases. After a few days, the decision rules in the real card holder's favor. As a result, the card company cancels the payment the purchases and we end up with huge unwanted losses.

Read more at: 6 Easy Ways to Jumpstart your Business With Credit Card Processing

Consolidate Credit Card Debt The Easy Way - Expert Tips And Advice

If you've just started looking into consolidating credit card debt, this article will give you some helpful tips and advice for getting started. Now, credit card debt consolidation isn't always the best route to take, but in many instances it can be extremely helpful in getting a handle on out of control finances.

So, why would anyone want to consolidate their creditcards?

First of all, by consolidating outstanding credit card balances it allows you to get out from under high interest rates and dramatically cut your costs. Obviously, if you're not able to get a better interest rate on your consolidation loan than you are receiving on your credit cards, turn and run.

Read more at: Consolidate Credit Card Debt The Easy Way - Expert Tips And Advice

Reward Credit Card

New ones pop up all the time, making it sound too good to turn down. Even though they may sound great, you may wonder if the rewards are truly worth it. In some cases they are, although in others they may not be quite as good as you would like.

Although having supplementary than one giveaway place is something prevalent folks double time think about, you should always keep in mind that not all of them are worth having.

Even though using your credit card is always good, you can sometimes end up paying quite a bit if you don?t pay attention to what you are buying. When it comes down to credit card reward cards, you should use caution - with a dash of common sense.

Read more at: Reward Credit Card

Study looks at merchants’ high credit card fees

OKLAHOMA CITY – Europeans don’t have to put up with high credit card interchange fees, Steve James, chief financial officer for OnCue Marketing, told lawmakers on Thursday. But American merchants have to give up as much as 3 percent of the sale price paid by customers who use plastic at the register.

Bankers’ representatives said credit card merchant fees are just another cost of doing business, and are nothing the state Legislature has any power to change.

State Rep. Ron Peterson, R-Broken Arrow, brought House Study Proposal 7121 before the state House Economic Development and Financial Services Committee on Thursday, to examine “credit card fees and other chargeable fees placed on merchants.”

James’ company owns the chain of OnCue Express convenience stores, with 34 stores in Oklahoma and one in Kansas. Interstate commerce laws prevent the Oklahoma Legislature from attempting to alter the fees Oklahoma merchants must pay for credit card use, but lobbyist Vance McSpadden said the Oklahoma Petroleum Marketers & Convenience Store Association wanted Oklahoma lawmakers to be aware of the issue. On the federal level, the issue is being addressed both with legislation and litigation, he said.

Read more at: Study looks at merchants’ high credit card fees

Mortgage lending increases as credit card spending declines

While mortgage lending continued to grow in August, credit card borrowing continued to fall back in the month, a new report shows.

Data released by the British Bankers' Association (BBA) indicated that mortgage lending rose by an underlying £6.1 billion over the month.

This was above the previous month's increase of £5.8 billion and the recent monthly average of just £5.4 billion.

Read more at: Mortgage lending increases as credit card spending declines

7 reasons to choose credit over debit

NEW YORK -- It's a question we face daily that still leaves most of us mystified: "Debit or credit?" Here, courtesy of Consumer Reports' Money Advisor, are seven reasons to opt for credit:

1. Credit costs you less. Some banks charge customers for so-called in-store "PIN-based" debit-card transactions. Fees range from 25 cents to $1, depending on the bank, Money Advisor reports. By choosing a "signature-based" transaction, you sidestep these fees.

2. Credit won't result in a hold on your account. When you use a debit card to reserve a hotel, rent a car or even fill up your tank, vendors sometimes put a "block" on your checking account until the transaction is processed -- and the amount of the block can significantly exceed the purchase price. Using your debit card to buy $25 worth of gas, for instance, may result in $100 of the money in your account being "blocked." If you're running a low balance, this can result in punishing overdraft charges.

Read more at: 7 reasons to choose credit over debit

Keep track of your credit card rate, even if you pay it off monthly

I have two credit cards with the same credit-card issuer. I pay one card off in full every month and carry a balance on the other. The card issuer recently sent me a notice that the rate on the card I pay off in full every month was about to increase.

The notice said the rate increase targeted only people who had bad credit scores (mine are good) or who did not carry balances on their cards.

I think that last reason is insane. I threatened to cancel my card and the company caved and kept my rate the same. Is this crazy or do I just not understand credit-card logic?Well, both. Credit-card companies try all different ways to manage their risk and increase their profits. A rate increase for a "deadbeat" -- which is what card issuers call someone who pays her balance in full every month -- is a way to try to squeeze more profit from a less-profitable customer.

The idea is if she ever should fail to pay her balance in full, the card company would reap more interest.

Read more at: Keep track of your credit card rate, even if you pay it off monthly

Improving your credit

Your credit rating is extremely important to your future, as it determines your eligibility to get any sort of finance, from a car loan or a personal loan to a credit card and even a mortgage.

In fact, you may find that unless you keep your credit on track you may not even be able to get rented accommodation through a private landlord, as many now run credit checks. Life can be very difficult for those with damaged credit, and therefore it is important to either keep your credit in check, or if you already have damaged credit to work on repairing the damage as quickly as possible.

The first thing to remember if your credit is already damaged is that you should avoid scams from companies that claim to be able to repair your credit. These companies often repair your credit only for a short period by querying your credit report, or they do what you could do yourself – go through your report and pick up on any mistakes or inaccuracies – but they charge you for the privilege. There is only one person that you should rely on to try and repair your credit, and that's yourself!

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Experts offer consumers advice

As the number of foreclosures and bankruptcies increase and the savings rate for Americans is at an all-time low, The Clarion-Ledger polled some area money managers for some tips consumers could use to keep more money in their pockets.

Almost all the advisers suggested consumers make conscious decisions about where and how they spend their money.

ASSESS YOUR SPENDING

Spending more money than you make is a common problem, said Stacey Wall, president and chief executive officer at Pinnacle Trust Wealth Management in Ridgeland. Get a real picture of your spending by keeping a journal for every purchase or use a computer program to track spending.

AVOID CREDIT CARD INTEREST

Minimum-payment syndrome causes many consumers to take years to pay off a credit card, said Todd Mark, a spokesman for Consumer Credit Counseling Service of Atlanta and Jackson. "You're not tarnishing your credit, but you're not making any headway either," he said. The best route is to pay off a credit card in its entirety each month, he said. If you can't afford to pay the total bill, pay more than the minimum payment if you can.

Read more at: Experts offer consumers advice

Effective use of your credit card

A credit card is a valuable financial product to most people in the UK, as it enables them to enjoy ease and convenience, as well as providing them with the flexibility to make cashless purchases and then spread the repayments over a period of time. There are many different credit cards available in the UK these days, with something to suit everyone. However, in order to get the best out of your credit card it is important to not only use the card wisely and repay it responsibly but also to ensure that you choose the right card for your needs.

With so many credit cards doing the rounds trying to determine which is the right one for you can be very difficult. All credit card companies make their cards sound tempting and great value, but the card that best fits your needs will be largely determined by the way in which you use and repay your card, as well as on your circumstances. You could save yourself a packet in interest by selecting the right card, and by being organized and 'rate tarting' you can make sure that you minimize on interest that you repay to the card companies. Amongst the popular types of credit cards available today are:

0% balance transfer credit cards

These credit cards offer 0% interest on balance transfers, which means balances that you transfer over from other credit cards. These cards are ideal for those with one or more credit cards on which they are paying high levels of interest on the balances.

Read more at: Effective use of your credit card

Why are credit card rates still out of control?

It has been more than six months since Congress began looking into what Sen. Carl Levin (D-Mich.) called the “unfair or abusive” practices of the credit card industry.

In March, bank executives were called to testify before the Senate Permanent Subcommittee on Investigations. So much public attention was focused on the issue at that time that several big banks announced they would modify or eliminate a few of their most egregious practices. Committee members vowed to write legislation to protect American consumers.

So far Congress has done nothing to reduce or limit the exorbitant fees and sky-high penalty interest rates being charged to cardholders. And consumers are about to take it on the chin yet again.

Read more at: Why are credit card rates still out of control?

Top Credit Cards

Would you like to know what 36,298 credit card users had to say about the 61,944 cards they've used recently? Would you like to know which ones they like the most? Well, the Consumer Reports National Research Center has some answers for you, along with some guidance.

Who's on first?
According to a study by the center, the top-ranked credit card is the USAA Federal Savings card, which scored 95 points out of 100 in the center's survey and charges a median interest rate of 7%.

The bad news is that this card is only for military and retired military people, and their families. Next up is the Navy Federal Credit Union card. Yes, I know -- that's another case of bad news, unless you are in the Navy.

Read more at: Top Credit Cards

Three Chase Credit Cards Added to CreditCardFlyers.com Business Credit Card Offers: Finding a Business Credit Card a No-Brainer

Fremont, CA -- There are now three more ways business owners can extend the buying power of their businesses with the addition of three Chase credit cards to CreditCardFlyers.com. CEO of CreditCardFlyers.com, Mr. Leo Chu, took the guess work out of business credit card offers when he launched the business credit card offer section on his Merchant Certified website: www.creditcardflyers.com.

Designed to make it easier to compare offers among business credit card lenders, Credit Card Flyers has already assisted thousands of business owners in selecting the best card for their unique needs.

The majority of business owners are too busy to find the time to contact several banks and credit card issuers to find the best credit card offer for their individual needs. With so many different types of business credit cards, it isn't beneficial for the business owner to just pick any card without comparing the advantages and disadvantages of several cards against their own credit needs.

Creditcardflyers.com allows business owners a faster way to compare offers among business card issuers; and provides comprehensive coverage on the different interest rates, annual fees and card features, which can all be found at a glance.

Read more at: Three Chase Credit Cards Added to CreditCardFlyers.com Business Credit Card Offers: Finding a Business Credit Card a No-Brainer

Next big crisis will be credit card debt

With the mortgage crisis still with us, the next big mess is coming. It is the other shoe dropping -- the credit card mess -- and it will be a big shoe.

American credit card debt is $850 billion, twice as much as the debt of the world's 54 poorest counties. The average household carries $9,659 of credit card debt.

Those who pay off their bill every month are known as "deadbeats," as they pay no interest, which is about 14 percent APR.

Last year, credit card companies mailed out 8 billion card offers and the average card holder has seven credit cards. Americans charged $51 billion of fast food.

Read more at: Next big crisis will be credit card debt

Now use your credit card where you are, or may go

Imagine you went to a restaurant, ordered your food and drink, had it, and swiped your own card at a machine embedded into the table, which would show you your bill, and every other detail.

Or you want to buy that dream gadget you saw on the Internet, while travelling between Delhi and Mumbai, miles away from any credit card machine. You can just punch in a code on your mobile, choose a credit card number already saved in the phone, and make a purchase right there. Sounds like science fiction doesn't it? But these super cool ways of spending are soon going to greet India's 30 million-strong credit card holders, say credit card companies.

Banks and credit card companies are falling over each other to capture the credit card users who spend close to Rs 4,000 crore every month.

Read more at: Now use your credit card where you are, or may go

Credit card rates rising, limits dropping

Now that homeowners can no longer easily use their homes as an ATM, many are turning back to credit cards.

But beware. Card issuers, like other lenders, are sensitive to problems in the beleaguered mortgage market and unlikely to give much leeway to consumers who start appearing risky. You may find your interest rate rising or your credit limit reduced.

"They are very, very sensitive to anyone who slips up on their payments, even just a little bit late," said Mark Zandi, chief economist at Moody's Economy.com.

Some consumer advocates say they have been hearing more complaints about higher interest rates and reduced credit limits when customers were late with a single payment or took on more debt.

Read more at: Credit card rates rising, limits dropping

Londoners can shop and go with quick-pay credit card

Barclaycard has launched the OnePulse Visa card, an all-in-one credit and travel card which lets you pay for everyday items like newspapers and snacks without entering a pin, and also doubles up as an Oyster card for Londoners.

Cardholders can use OnePulse to make purchases under £10 'quickly and conveniently', without having to physically hand over their card or enter a pin.

Instead, the card is tapped onto a reader which automatically charges you for the cost of the purchase and appears as a transaction on monthly credit card statements. Retailers including Books Etc, Coffee Republic and Eat will accept the cashless payment method.

Read more at: Londoners can shop and go with quick-pay credit card

Use credit to your advantage

We are all living on borrowed time. Many of us are living on borrowed money, too.

Thirty years ago, a college student wouldn’t have had as many choices for a credit card, even if they wanted one.

Today, it’s easy to get a credit card. Some companies will pre-approve high school seniors and send them the forms to fill out for a new card.

A banker once explained credit to me as, “your ability to handle payments.”

Credit can be very good when it’s used responsibly. Depending on the situation, it can be a very helpful tool to have and use, especially when applying for a car loan or renting an apartment.

Read more at: Use credit to your advantage

Does Free Credit Card Debt Consolidation Exist?

Free credit card debt consolidation service is often advertised by many credit card and debt consolidation service providers. But the companies that actually provide free credit card debt consolidation services are very few. Most of the companies that advertise free credit card debt consolidation charge a monthly fee in exchange for their services.

But nevertheless, we can’t deny that the monthly charge levied by these companies is considerably lower than what other ‘for profit’ companies would charge you.

How Do I Choose A Reliable Service Provider?

Since many companies advertise free credit card debt consolidation, it is not easy to spot a fair deal. You can start with looking for free credit card debt consolidation service provider online. You can get a lot of information on the companies’ websites.

Most of these companies will also offer you free quotes that will give you an idea of the interest rates, the term period of credit card debt consolidation loan, and the monthly payments you will make to payoff the loan. Once you get the free quotes from multiple companies offering credit card debt consolidation services, you can compare the pros and cons of each.

Read more at: How to Pay Off Multiple Debts

How to Pay Off Multiple Debts

Debt—especially debt from multiple sources—can quickly become overwhelming. Divorce, which usually means a lower household income, adds another challenge. To figure out your next step, start by estimating your future income, post divorce, and then calculating what you can afford to pay along with the risks you are willing to take.

Refinancing your home to absorb the credit card debt would almost certainly reduce your monthly interest payments. A rate in the mid to high teens, such as 17 percent, is not unusual.

Your mortgage rate, on the other hand, would be around 5 percent, at least temporarily. By folding the high-interest credit card debt into the mortgage, you could save hundreds of dollars a month, says Michele Noble, a mortgage specialist at Bank of America Consumer Real Estate.

Read more at: How to Pay Off Multiple Debts

China's credit card market enjoys huge potential

"It's just a beginning. I think there's a huge potential going forward." That's how a senior management with American Express describes the credit card market in China.

The world's largest independent credit card issuer has recently cooperated with China CITIC Bank. They together launched their first card product in Beijing on Monday.

China's central bank unveils that the number of credit cards issued in the country has been increasing at an average growth rate of 1 million per month in the first quarter of this year.

Based on a record of nearly 50 million by the end of last year, this growing pace, however, doesn't surprise Dave Keung, the vice president of American Express Greater China.

Read more at: China's credit card market enjoys huge potential

Credit card purchases rising

WASHINGTON - Consumers kept charging at a rapid pace on their credit cards in July although their overall borrowing slowed a bit.

The Federal Reserve reported that consumer credit rose at an annual rate of 3.7 percent in July, down from a 5.9 percent growth rate for consumer debt in June.

The slowdown reflected a big drop in borrowing in the category that includes auto loans. The category that includes credit cards saw an increase as consumers continued to turn to their credit cards to finance purchases now that home equity lines of credit are becoming harder to obtain.

Read more at: Credit card purchases rising

Credit: What makes finance go round and round – just like the average Joe’s budget, down the toilet

Reputation for solvency and integrity entitling a person to be trusted in buying or borrowing: You should have no trouble getting the loan if your credit is good.

Every day that my mail is delivered, I get at least two solicitations to obtain a credit card. The record to date is eight such missiles on a single day, of which six of them declared me to be pre-approved. Rather than being flattered, I cringed at the news. In one day I was offered more than thirty thousand ways to totally destroy my life.

Of course there was one part of me that threw out its chest and said “look at me, I’m a success,” but fortunately I was able to override that weakness and stand firm against folly. And folly it would be was I to fall into the money trap that Credit Card companies are forever trying to sucker you into. Unfortunately, there are thousands of everyday people who ensnare themselves into the clutches of the banks through credit cards every week.

Read more at: Credit: What makes finance go round and round – just like the average Joe’s budget, down the toilet

"Use Me!!" says Credit Card

About 57 years ago the United States was introduced to the first credit card. This card delighted those people who had only dreamt about living in luxury. They bought a new T.V., new furniture, and new clothes to temporarily ignite twinkling eyes.

This temporary effect faded once the people who used this “magic” card fell heavily into debt. Their lives of misery began because of the continued lack of money they have to work for, then had to give up.

The credit card was created to give people the chance to buy things on the spot that they wouldn’t usually afford. They charge items on their card and pay for their purchases over time.

Today the credit card is so overused that it gives people the illusion that it’s impossible to pay their debts, so they continue using it since it’s already their problem. The U.S. economy runs on consumerism through advertisements. Those advertisements offer people several ways to pay, so millions of people turn to the easiest form, charging it.

Read more at: "Use Me!!" says Credit Card

How to Avoid College Credit Card Debt

After you've nailed down a budget, you and your student face a basic decision: how to transfer money from the Bank of Mom & Dad to your student in a secure and timely manner.

Paper checks and snail mail will do the trick, but why bother when electronic transfers are available? Such transfers can be a snap, especially if you and your student use the same bank.

"You don't need bricks and mortar to do banking," says June Walbert, a Certified Financial Planner at USAA Financial Planning Services. "Kids are Internet-savvy and can do everything online."

Think about who will pay the monthly bills. If your student has little or no experience with money, it might be smart for the parents to write the tuition, dorm fee or rent checks – at least at first. Even if your student handles money well, consider depositing the tuition and rent money in your student's account just before it will be needed.

Read more at: How to Avoid College Credit Card Debt

Play your credit cards right

Banks love issuing credit cards because they make a healthy profit from people who don't understand how they work. In order to lure people in, they offer a range of incentives such as 0% interest and cashback. But with a little know-how, you can turn the tables and even make a profit on your credit card spending.

Use multiple cards

If you're transferring a balance to a 0% credit card you can enjoy over a year's worth of interest-free credit - one of the best deals is currently Virgin Money with 15 months. But many cards that offer attractive 0% balance transfer deals also offer a short period of 0% on purchases for, say, three months. Whatever you do, don't spend on these cards!

When you make a repayment, the credit card provider will offset it against the part of your balance that attracts the lowest interest rate (i.e. the 0% balance transfer). This means any purchases you make will cost you interest, typically in the region of 15% to 20% a year, until you've paid off all the balance you've transferred.

Read more at: Play your credit cards right

Barclaycard puts Oyster, credit card and payment card in one

Barclaycard has launched the OnePulse card that combines a Transport for London Oyster card, credit card and cashless contactless swipe payment card.

Using the OneTouch payment system Londoners will be able to make purchases of £10 or under with a single touch of their card against a reader - as they would use an Oyster card - instead of entering a PIN or signature.

The credit card function of the Barclaycard OnePulse offers zero per cent interest for purchases for six months and has a rate of 14.9 per cent APR typical variable.

Read more at: Barclaycard puts Oyster, credit card and payment card in one

Earning travel awards with credit cards

If you're a member of an airline or hotel loyalty reward program, chances are you've received an offer in the mail to sign up for the company's affiliated credit card. Don't just toss the offer in the garbage like another piece of junk mail. Signing up for such a card from banks like Chase and Citibank is often an easy way to score a free flight or hotel stay, so long as you understand the rules.

And if you've never received such an offer, don't despair. Anyone can sign up for such cards, earn points for each dollar spent and, more importantly, get free bonuses that can be traded in for travel right away. Under "Travel Rewards" at the Web site for Chase (www.chase.com), Visa cards are listed with affiliations to companies like Continental Airlines, Marriott, United Airlines and Southwest Airlines.

- The cards from Chase: The simplest rewards are available through Chase's hotel credit cards. After receiving approval for a Marriott Rewards Visa Signature Card, customers get one free e-night certificate, which can be traded in for a stay at one of the company's midlevel brands such as Fairfield Inn, Courtyard or SpringHill Suites.

Read more at: Earning travel awards with credit cards

Crunch may hit consumer

The turmoil that started in the mortgage market and ripped through other credit markets has not impacted credit card, auto and other consumer loans in a big way.

Some experts fear that it might, though, especially if the economy weakens.

Soaring delinquency rates on subprime mortgages have caused investors to turn their backs on securities backed by risky home loans. As a result, many lenders have cut back or stopped making mortgages other than conforming loans that can be sold to Fannie Mae and Freddie Mac. That means borrowers have to pay more for non-conforming loans - including jumbo loans over $417,000 - than they did a few months ago, if they can get them at all.

Many credit card, auto and college loans are also packaged into asset-backed securities that are sold to investors. Demand for these securities has also declined in the aftermath of the credit crisis. "A number of securitization deals have been delayed or shelved," mainly because the loan originators and investors couldn't agree on a price, says Tom Deutsch, associate director of the American Securitization Forum.

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Business credit card may be just the ticket

If expense reports are piling up and you're tired of hearing your employees complain about not getting reimbursements, it might be time to consider a business credit card. The Better Business Bureau (BBB) offers time-tested, trustworthy advice to business owners on choosing the right credit card for your business.

Banking and credit card industry studies and reports note that small businesses in the U.S. spend nearly $5 trillion annually on products and services. However, studies also report that only about six percent of all small business operational transactions involve the use of credit cards.

It is easy to understand why small business credit cards represent a growing, competitive marketplace, and many banks and credit card companies are actively pursuing small business owners as a rich source of new partners and clients.

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Spend on your credit card with no interest!

In a bid to attract new customers credit card providers sometimes offer low interest introductory rates on purchases. Offers of interest free credit on purchases made with the card can be anything between three months and a year. Choosing a card which offers 0% interest on purchases for a set period gives you the option to spread payment for items over a decent period of time and can also avoid the high interest rates charged by some credit and store cards.

Before you do sign up to a card with a 0% introductory offer on purchases, you should check how long the interest rate applies for and also what the interest payments will increase to after the low interest period (i.e. the standard APR of the provider).

After the 0% interest on purchases expires, if you have a balance remaining on your card, it may be worth looking at switching to a balance transfer card, which usually offer a 0% interest introductory rate on existing balances transferred from other cards and can provide you with the opportunity to clear what you owe. Almost all of these, however, come with a balance transfer fee as a percentage – usually 2.5% to 3% these days.

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Fixing the College Credit-Card Mess

Every year for the past six years, Representative Louise Slaughter (D-N.Y.) has introduced a bill designed to prevent students from taking on unmanageable amounts of credit.

For six years, she has tried to alert Congress to the dangers of college student debt. And for six years, she has failed.

But this year may be different. With a Democrat majority in Congress and a growing number of college kids piling up debt that could haunt them long after college, credit-card companies are coming under increasing scrutiny, and Slaughter thinks she just might have the critical mass to succeed this time.

"This Congress finally cares more about the interests of students than the interests of credit-card companies," says Slaughter.

Read more at: Fixing the College Credit-Card Mess

The truth about children and pre-paid credit cards

If your child has a pre-paid credit card, or if you have a prepaid credit card that your child could have access to, then you might want to read this.

According to The Observer, children today are using pre-paid credit cards to fund alcohol, porn and to gamble online.

When you purchase anything online it simply asks you for your date of birth and your credit card number.

Very rarely do you have any other checks regarding your age.

So this leaves a big opportunity for children under the age of 18, to purchase things that they really shouldn’t.

Read more at: The truth about children and pre-paid credit cards

The Dirty Secret of Campus Credit Cards

It was three years ago and Irene Leech still remembers the shock clearly. An associate professor at Virginia Tech who specializes in consumer affairs, she read the terms of the credit card that her school, together with JPMorgan Chase (JPM), was marketing to students, alumni, and staff.

Behind the card's shiny surface, featuring the football stadium at sunset, the so-called "affinity" card offered some of the most unfavorable terms around for card users. Among other things, the card had what's known as "double-cycle" billing, where interest is calculated over two months instead of the typical one, resulting in higher finance charges. "I was shocked," she says.

The experience convinced Leech that it was time for her to take a stand. First in a limited way and now more broadly, she has been speaking out against the conflicts of interest that universities face when they strike business agreements with credit card companies.

Chase ultimately dropped double-cycle billing on the Virginia Tech card, as it did for all cards earlier this year. But Leech warns that schools that get money from credit card companies through affinity contracts or other marketing agreements face intractable problems, in which the school's financial interests are in direct conflict with those of students and alumni.

Read more at: The Dirty Secret of Campus Credit Cards

College Students Using Student Loans to Bail Out of Credit Card Debt

College students are using student loans to bail out of credit card debt, leading to poor real-world money management skills and future financial burdens according to a personal financial planning expert at the University of Missouri-Columbia.

"Students get caught in a vicious cycle," said Mark Oleson, director of MU's Office for Financial Success. "They max out credit cards with expenses that are often not education-related and then transfer those balances to student loans.

The following semester they feel that they are out of credit card debt and start using the credit cards all over again."

Read more at: College Students Using Student Loans to Bail Out of Credit Card Debt

Confessions of a Credit-Card Pusher

It all started as a way to make some quick cash. In 2002, at the beginning of his freshman year at the University of Pittsburgh, Ryan Rhoades needed some extra spending money.

So when his friend told him about an Internet ad offering Pitt students a way to make some cash in a couple of hours, he didn't hesitate. Rhoades rounded up some of his buddies and headed over to the designated classroom at the student union.

What he saw in that room offers a view of how creative credit-card companies have become in marketing their services to college students.

An enthusiastic man who identified himself as a representative of Citibank (C) welcomed them and said they had the opportunity to make some money by signing up their fellow students for credit cards. The bounty for each completed application would be $5 to $10, depending on the kind of card.

In retrospect, Rhoades feels like he and his fellow students were being recruited to become credit-card pushers. "That's exactly what it was," he says.

Read more at: Confessions of a Credit-Card Pusher

5 Ways To Keep Your College Student Credit Card Debt Under Control

If you're a college student with access to plastic, it's important to keep an eye on your college student credit card debt. No matter how smart, educated or responsible you are it's easy to let debt get out of control without even realizing it's happening. If you want to play it safe, follow these helpful credit card debt tips.

1. Watch Your Balance

One of the best ways to keep an eye on your college student credit card debt is to look at your balance and compare statements each month. If your balances keep going up, your debt is going up. Look at why this is happening and try to make spending adjustments accordingly.

Read more at: 5 Ways To Keep Your College Student Credit Card Debt Under Control

Credit card companies woo struggling mortgage-holders

As subprime borrowers began to default on their mortgages in rapidly growing numbers this year, credit card issuers increased their efforts to sign up such customers with tarnished financial histories, according to a market research firm.

Direct mail credit card offers to subprime customers in the United States jumped 41 percent in the first half of this year, compared with the first half in 2006, according to Mintel International Group. Direct mail offers targeted at customers with the best credit fell more than 13 percent.

Yet, during this same period, defaults on subprime mortgages, which charge higher interest rates because the borrowers' blemished credit makes them bigger risks, rose significantly. In June, nearly 1 in 5 subprime mortgages were at least 60 days past due, and more than 1 in 20 were in foreclo sure, according to First American LoanPerformance, a San Francisco firm that collects and analyzes mortgage data.

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Credit-card firms see defaults soar

NEW YORK -- With more Americans filing for bankruptcy again after last year's hiatus, credit card default rates are spiking.

Though the percentage of payments being written off as uncollectable isn't as high as it was a couple years ago, the conditions are ripe for it to catch up. Bankruptcy filings keep pouring in, home prices continue to fall and energy prices remain high.

According to data from Moody's Investors Service, credit card companies wrote off 4.58 percent of payments between January and May, up nearly 30 percent from the same period in 2006.

"In 2007, we expected an increase, as bankruptcy filings returned to more normal levels," said Jay Eisbruck, managing director in Moody's Investors Service Asset-Backed Finance Group. He called this year's resurgence in bankruptcy filings the primary reason credit card default rates have soared.

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Don’t be a soft credit card target: latest deals

Always remember when you’re dealing with any financial institution that you are a 'sales target'. Although banks may use flattering terms like 'valued customer', they really mean you are simply a potential cash cow.

When creidt card providers increase your credit limit without asking you, offer you a so-called 'prestige' credit card, or send you unsolicited credit card cheques what they are simply trying to do is to persuade you to spend more and that means borrow more from them, so that you will pay as much interest as possible.

Equally critical as a source of income for credit card issuers is Credit Card Repayment Protection (CCRP), which they try and get you to buy every time you take out a new card. You should remember that this is entirely optional as an insurance policy that will make your monthly repayments if for reasons of accident, sickness or unemployment you are unable to work. It also pays off your outstanding balance if you die.

Read more at: Don’t be a soft credit card target: latest deals

Credit Card Debt Consolidation In UK – Get Rid Of Credit Card Debt

If you want to repair, your financial condition with credit card debt consolidation, UK is probably the best place for you to be located in.

Debt management, UK has a number of specialized credit card debt management programs run by various financial firms.

These firms will guide you through the entire process of credit card debt consolidation beginning with the basic budget management strategies.

The special thing about any UK debt management program is the fact that they have extremely efficient and highly trained professionals dealing with debt management queries.

Read more at: Credit Card Debt Consolidation In UK – Get Rid Of Credit Card Debt

Students Easy Prey For Credit Companies

By this time of year, most college students are settling in. They already know where the good (and cheap) food is around campus. If they're at sleep-away school, they've decided if they love (or don't-love) their roommates.

And right about now they are feeling that particular kind of love coming from a crowd of strangers who ask only their signatures in return.

For inspiration about that last one, let us turn to Elder Marichal Monts, pastor of Hartford's Citadel of Love.

When Monts left his mother's home in Hartford's North End for Wesleyan University, he carried with him a bedrock faith, a heap of musical talent and absolutely no clue what it meant to have a credit card - or, for that matter, what it meant to have stuff.

He was the perfect target.

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Is next big credit crunch in the cards?

Now that the easy money in home mortgages is all but over, consumers may soon be caught in a financial squeeze with their credit cards.

That’s the worry among some economists and credit counselors as home lending has shifted abruptly into low gear this summer. That leaves homeowners owing big sums to Visa or MasterCard without an important escape hatch — the ability to pay down the plastic by dashing off a check from their home equity line of credit or rolling the debt into a new, bigger mortgage.

“You’re not going to be able to get that mortgage loan. You’ll be stuck with the higher-interest credit card debt,’’ warns Carl Steidtmann, chief economist with Deloitte Research. “We will have to live within our means. I know it’s a troubling phenomenon. But we’re not going to be able to spend at levels well above our income levels.’’

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Training needed before applying for credit cards

I tell young people that obtaining their first credit card, in their name, is just like buying a gun.

This comparison always brings a puzzled look. They can't make the connection!

No one should own or even handle a pistol or long gun such as a shotgun or rifle without safety training.

No one should carry a credit card without training in how to use credit, but more importantly how to pay what's owed on that credit card account.

These little plastic cards are part of growing up. A man or woman today has to possess a major credit card to spend the night in a hotel and to rent a car at an airport. I still remember hearing of a North Texas rancher who was well-to-do, but never got around to applying for a credit card.

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Warning for credit card customers

A little known practice by card companies has been exposed, which can eat into your credit limit.

When your card is swiped on checking into a hotel, what's actually happening is that a sum is reserved from your account to cover the full cost of the stay, including an estimate to cover all extras.

That "earmarked" sum is unavailable for your use until it is cancelled at the end of the stay, when the hotel processes your final bill.

The problem came to light when Peter Ellis contacted BBC Radio 4's Moneybox when he got back from a trip abroad.

He had checked-in to one hotel - where his credit card was swiped.

But then - without running up any charges - he decided to stay somewhere else.

Read more at: Warning for credit card customers