Here are some tips for preventing the pitfalls of credit cards that so many consumers have found themselves in:

• Find the credit card that is right for you – Instead of choosing a card because of rewards or introductory rates, concentrate on the basics of the credit card, including the APR and the annual fee. Your ability to build a strong credit history relies on your ability to pay your card on time and pay it off in a reasonable amount of time. It is therefore imperative that you find a card with only the most competitive rate and terms.
• Understand your card’s terms and conditions – Your card’s terms and conditions are likely to change because of the new credit card legislation, so it is more important than ever to pay close attention to any and all changes relating to your credit card’s terms and conditions. It is ultimately up to you to understand your credit card and all of the rules and regulations that go along with it.
• Know your credit card’s APR and pay close attention to any changes –Always pay close attention to your credit card’s APR. In fact, it is a good idea to take note of the APR every time you receive your credit card statement. Although credit card companies must provide you with at least a 45 day notice of any changes to your card’s APR, you may miss this disclosure. It is therefore always a good idea to take note of your card’s APR.
• If your card isn’t working for you, don’t be reluctant to find another card that will work for you. You must remain in charge of your financial well being, and that includes taking charge of your credit card. If you don’t feel as if your credit card is giving you the most competitive rate and terms, then by all means find another card that will.

Don’t let your holiday bills bog you down all year long. Take care of them now so that you can begin enjoying a debt-free 2010.

The following tips will help you formulate a plan to pay off your holiday bills:

• Carefully review all of your credit card bills – Because there is likely a lot of activity on your credit cards from the holidays, you will want to thoroughly examine all of the charges on your credit card statements. It is not uncommon to spot errors, so the earlier you catch them, the better.
• Assemble all of your credit card statements and write down the balances, the minimum payment amounts and the interest rates on all of your cards – The general rule of thumb is to concentrate on the credit card with the highest interest rate first, so consider something like this: pay the minimum payment on all of your credit cards, with the exception of the credit card with the highest interest rate, as you will want to put as much money as possible onto this card until it is paid off. Then, do the same thing with the rest of your credit cards.
• If you have strong credit, consider consolidating all of your holiday credit card bills onto one, low-interest credit card. Pay close attention, though to the terms of the balance transfer offer, and check out the balance transfer fee.
• If you find yourself drowning in credit card debt, don’t wait to seek help. Instead, find a reputable, non-profit consumer credit counseling service. These organizations can help negotiate lower rates and more reasonable repayment terms, particularly if you are struggling to simply pay the minimum payments on your credit cards.

Don’t let life situations catch you off guard and end up costing you big in the form of credit card finance charges. Instead, make it a point to plan ahead and prepare for those changes in life that can cause our finances to spin out of control.

When you are likely to get into Credit Card Debt:

• When you have a baby – Having a baby is no doubt a huge strain on any family’s finances, especially when a couple who normally lives off two salaries is not cut down to one for a specific length of time. The easiest way to plan for a new baby – and save yourself from credit card debt in the process – is to begin the task of budgeting long before the baby arrives. For example, if you know that you or your spouse will be taking time off from work to care for the baby, or if you or your spouse is even considering quitting your job to care for the baby full-time, you must understand that this can take a huge toll on your ability to budget your household. Your best bet is to begin saving as much money as possible ahead of time and to start living as if you are without a salary. That way you can begin deciding where you need to cut back and save so you are better prepared when the special time comes.
• When you change jobs – Changing jobs can be both a positive and negative financial experience. Many individuals must take a pay cut to move to a more desirable job, while others begin spending more because they are earning more. Either way, your finances can be thrown for a loop when you change jobs. To keep yourself out of credit card debt during this transitional time, remember to stick to your budget and cut down on your discretionary spending until you have settled into your new position.
• When you remodel your home – Remodeling your home is a tricky process that can often quickly spin out of control. Many remodeling projects go way beyond the projected budget, leaving homeowners little choice but to charge a good portion of the project just to get it completed. To avoid this, make a detailed budget and stick to it! Be realistic and budget for surprises or additional expenses, and revisit your budget and where you stand throughout the project as to avoid any surprises.

Whether through your bank or through your credit card’s website, you can pay your bill and stay on top of your debt without relying on snail mail.

Often times, it just makes more sense to sign up for the credit card management system offered through your credit card, as it will be able to provide you with more information than the bill payment system through your bank.

The Benefits of Online Credit Card Management

In other words, a credit card online management system may allow you to do many things: it may allow you to view your statement; it may allow you to pay your bill online; it may allow you to set up an automatic payment system; it may allow you to request convenience checks; and it may even allow you to ask for a credit increase.

Whatever type of online credit card management system you choose, one thing’s for sure: it sure beats paper statements, checks and stamps any day of the week.

Many people who use credit card management systems may choose to simply eliminate their paper bill each month. Not only can you save paper, but you can greatly increase the practicality and convenience of paying your credit card bill each month.

Features of Online Credit Card Management

You can use your credit card online management system to check recent transactions and to periodically check your account for any signs of theft or fraudulent activity. You may also periodically check your credit card’s balance to prevent you from going over your credit limit.

How to Protect your Identity

Before signing up for an online credit card management system, make sure your computer has the most up-to-date anti-virus and firewall protection, and always make sure that the website security certification is up to date. Finally, always choose a random user name and password, and not a password that is easily identified, such as your address or birth date.

Before accessing your account via your credit card’s website, make sure that you identify the locked padlock symbol near the address bar and that the address of the web page starts with “https”. This signifies that the website you are currently on is encrypted to prevent credit card thieves from gaining access to your personal information.

You swore you’d keep your spending in check this holiday season and lay off the credit cards. But here you are again: stuck with loads of credit card debt and equal parts post-holiday guilt.

Don’t give up hope just yet, though. The fact of the matter is that there are a few, simple ways to control your debt and spending and eliminate credit card debt so that it doesn’t rule your life.

The following tips will help get you started on a new, financially responsible 2010:

• Consolidate your debt – Often times, debt can seem all the more overwhelming and difficult to manage when you are struggling with numerous credit cards. Instead, consolidate your debt onto one credit card with a competitive interest rate and a fair balance transfer offer.
• Pay more than your minimum payment – Simply put, your credit card balances can go nowhere if you continue to pay just the minimum payment. Find at least a few extra dollars each month in your budget and put it towards your credit card bill – your balance will thank you for it.
• Order a copy of your credit report – You can’t begin to move forward until you clear up your financial past. Order a copy of your credit report from all three major credit reporting agencies (you are entitled to one free copy each year) and take the time to thoroughly check them out so you can move forward with your financial plan.
• Cancel any retail credit cards – Retail credit cards are often an invitation for financial trouble. Too much temptation combined with high interest rates often spells trouble for credit card consumers.
• Consider a home equity loan – If you have equity in your home, consider using it to your advantage and use it to pay off your credit card debt. However, if you don’t change your spending habits, you will likely end up in the same situation in the upcoming year.
• Make a budget and stick to it – Which leads me to the last tip: make a budget and stick to it. The bottom line is that if you don’t make a point to change your spending habits and your view on finances, you will likely find yourself in the same financial mess as you are in right now. If your finances and credit card debt are more than you can handle, consider speaking with a non-profit consumer credit counseling service.

Consolidating debt is often a popular choice for individuals who are looking for the convenience and practicality of paying just one bill every month instead of multiple bills; it is also ideal for individuals who are looking to lower the interest rate on other higher-interest rate debt and establish one, affordable payment.

The consolidation of debt is quite easy, provided you have a solid credit score and a low, debt-to-income ratio. Debt consolidation is probably not right for individuals with poor credit, as they are either unlikely to be approved for debt consolidation loans or credit cards, or they are likely to pay high interest rate on the loan.

Debt consolidation is often the smart choice for paying down debt and achieving the financial freedom that is highly desired by so many people.

Your Debt Consolidation Options:

• Debt Consolidation Loan – A debt consolidation loan is often a popular choice for individuals searching for a small, affordable payment. Debt consolidation loans may be taken out for a number of years, depending on what you can afford to spend each month to pay off the loan.

Many times, lenders will offer consumers a choice regarding the length of their loan. The longer the loan term the lower the payments, and vice versa; however, it is important to point out that longer loan terms also mean more interest charges. Debt consolidation loans typically fall under the category of personal loans, and can therefore feature different fees, loan terms and conditions. Compare lenders to find the best consolidation loan with the most competitive rates; however, it is important to remember that debt consolidation loans, because they are typically unsecured loans, come with higher interest rates than other types of secured loans, such as home equity loans.

• Home Equity Loans – Speaking of home equity loans, many consumers choose them to consolidate their debt because they typically offer low interest rates and long loan terms. Your ability to obtain a home equity loan, however, will be dependant upon several factors, including the amount of equity you have in your home. In addition, it is important to remember that home equity loans come with their own share of risks because they are attached to your home. In other words, if you fail to pay your home equity loan you could risk losing your home.
• Credit Card Consolidation – Perhaps the easiest way to consolidate your debt is through a credit card. Many times, credit card companies will offer consumers the option of transferring debt onto one, low-interest rate credit card. Many credit card companies offer enticing, introductory rates for balance transfers, as well. There are a couple things that need to be remembered about consolidating your debt onto one credit card: pay close attention to the card’s terms and conditions, including balance transfer fees, and pay close attention to the card’s interest rate once the introductory period has ended.

1. Forget about your budget – One of the easiest, most surefire ways to get yourself into deep credit card debt is to spend like you have no budget. Many individuals, with a credit card in their hand and a hefty credit card limit, are likely to overspend. This is because a credit card can quickly give individuals a false sense of wealth and security when, in reality, it is debt that they simply cannot afford to pay off. Making a budget and sticking to it is often a great, first step in reigning in your credit card purchases and keeping your mind realistic about your expenses.
2. Pay only the minimum payment – It may be incredibly tempting to pay on the minimum payment each month, but that will get your credit card debt nowhere fast. The best case scenario is paying off your credit card debt in full each month; however, if this isn’t possible, make it a point to pay more than the minimum payment so that you are paying on the principal of the loan, and not just the interest.
3. Make your payment late – Making your payment late is a great way to plunge yourself further into debt! From late payment fees and increased interest rates to a drop in your credit score, making late payments is, without a doubt, the best way to ensure that you will remain in credit card debt.
4. Take out cash advances – Cash advances are sneaky little conveniences that end up costing big in the long run. First of all, cash advances come with their own, higher interest rate than standard purchases. Second, they raise little red flags with your credit card company that you may be desperate, thereby often signaling a drop in your credit score and an increase in your credit card interest rates.

Instead of using credit cards to make ends meet, make a household budget to better manage your money. Luckily, there are easy ways to get a grip on your budget so you can save your credit card purchases to only those that you can afford to pay back:

• List all of your expenses, even the most insignificant – The best place to start when making a budget is with a list of expenses. Account for every expense – even the cup of coffee you purchase every morning on the way to work – otherwise you won’t have a clear picture of where your money goes every month. From gasoline and groceries to clothing, entertainment and utilities, make a comprehensive list and go from there.
• Be realistic about your monthly expenditures – You can’t make a budget if you aren’t honest with yourself. If you make a restrictive budget that is simply not realistic you cannot expect to keep it. Be honest about your budget so you can better manage your expenses.
• Pay your bills –and yourself – first – Don’t spend a penny until you have taken care of your obligations, which should include your bills and your savings and retirement accounts. Many individuals make the mistake of spending elsewhere before obligations have been met, which surely leaves them in a bind when it comes time to paying bills. Paying your bills on time, which includes your credit card bills, is incredibly important for maintaining your credit score and credit standing, which thereby saves you money from late payments, high interest rates and an overabundance of debt.
• Better manage your monthly bills with online bill paying – If you are having difficulty balancing your checkbook or getting checks written and sent in time then you may be able to benefit from the convenience of online bill paying. Online bill payment systems, which are often available through your bank, allow you to better manage your money by paying your bills on time and by providing you with a current account balance at any given time.

Called “holiday hangover,” it is the time of the year that many consumers cringe when they open their credit card bills. Too much debt and not enough cash means that credit card balances go nowhere while interest rates and fees continue to mount.

This is the year that you can change this, though. Instead of digging yourself into debt this holiday season, change your attitude toward holiday spending and instead spend smart to save yourself from a “holiday hangover” in 2010.

How to Keep your Credit Card Spending in Check this Year:

• Understand retailers’ tricks and be prepared to reject them. It is not uncommon to be inundated with credit card offers every time you walk into your favorite retailer. Although these enticements can be tempting, keep in mind that most retailers charge much, much more in interest charges than major credit cards. The bottom line: you will likely end up spending more in interest charges with retail credit cards, regardless of whether you take advantage of a promotional rate.
• Take your credit card out of your wallet unless you make a planned purchase. Impulse spending is the weak spot of many consumers. You’re out and about when you notice something that you didn’t think you need, but now you can’t live without. Sound familiar? For most consumers, this type of spending is dangerous and all too common. Your best bet is to simply leave the credit card at home until you are ready to make a purchase.
• Make a budget and stick to it. If you do your homework and set a strict budget for all the people on your list you are far less likely to go overboard with purchases, and far less likely to charge up your credit cards.
• Determine your ability to pay off your debt before you make a purchase. If you want to make a credit card purchase, but you know you don’t have the money to pay it off in full next month, sit down and calculate the interest you will be paying. Often times, this bit of reality is enough to make you think twice about hefty purchases.
• Choose the best credit card and put away the rest. You don’t need to use all of your credit cards, and you really shouldn’t. Instead, take the time to compare the rates and terms on your credit cards and use only the card with the best terms and conditions.

Those $150 red, high-heeled boots that I thought I absolutely had to have? Yep, they’re sitting at the bottom of my closet. I never did find anything to match them. But, I paid the price for many months as I struggled to pay them off.

I awarded myself with a cruise for my job promotion a few years ago. Unfortunately, the cruise cost more than my job promotion paid and I ended up with a hefty credit card bill that took the better part of two years to pay off.

What both of these purchases had in common were that, given the opportunity to do over, I would have not likely indulged in them. Classic emotional spending mistakes that I wish I could have taken back.

I have since learned the art of controlling my emotional spending by following three, simple rules:

1. I keep all but one of my credit cards at home, locked in my safe. It’s a whole lot harder to make an emotional purchase if I have to travel home first to retrieve the credit card.
2. I avoid my weak spots. I have an affinity for a certain little retail shop in the mall. If I don’t have the money to purchase anything, I simply don’t go there. In fact, I don’t even walk past it. It may sound simple, but many of our little “harmless” trips into our favorite stores end up costing us big.

I wait it out for at least 24 hours. I have learned to “sleep on” any large purchases. In other words, I check out the product, get a price and then head home to think it over for the night. After considering the cost, as well as the length of time it will take to pay it off, I often find myself passing on purchases that, just 24 hours earlier, I thought I absolutely must have.