Althought consumer credit is no longer at an all time high, in this country it is still a problem. You know about credit cards, at least you think you know a decent amount. Our national savings rate is slowly increasing. Become part of the trend, here are 4 ways to combat Credit Card Debt.

There’s been a boom in online shopping. That trend is certainly not stopping. Online transactions are absolutely dependant on credit cards – and this isn’t helping the average consumer. Running a balance on your card and paying interest rates that are out of this world (when compared to what you would receive in return for such balances at a bank) is how the majority of consumers create the biggest issues for themselves. The proof is in the mail. Literally – how many direct mailers do you see on a yearly basis telling you that you qualify for 0% interest? The paper, the postage, the design and the time spent on creating these costs money. Credit Card companies don’t mind – they know they’ll make that back and then some off consumers.

Facts are, Credit Cards are a way of life. No one wants to carry cash anymore. So its wise to understand how to use them. Its impractical to not have credit cards at this day in age. Being prudent and limiting the number of cards you have, or simply just the ones you carry and use on a regular basis is important. Paying them, yeah, that’s also important.Indeed, having only a traditional American Express card, which doesn’t allow you to carry a balance, can be an excellent way to impose fiscal discipline on you and your family-although, as the Visa ads point out, not everyone accepts American Express. For the rest of us, who do occasionally dabble in credit-card debt, here are a few ways to keep your habit under control.

So here they are, 4 ways to combat Credit Card Debt and use Cards more wisely:
1. Take advantage of frequent-flier or cash-back programs tied to credit cards, but keep in mind that interest payments on a high balance can quickly turn “free” flights into outrageously expensive ones. At a dollar per mile, running up a debt of 25,000 may get you a plane ticket, but it will also saddle you with $4,500 in yearly interest payments, assuming an 18% annual rate.

2. Look very closely at credit-card offers before you bite. Obviously, most of those 2.99% and 3.99% rates will be in effect for only a few months. But there may be other catches as well. Making a late payment, even if it arrives only a day after it was due, may immediately trigger a permanent rate hike. Also, low initial rates sometimes apply only to transferred balances, and you could get charged a fee for making the transfer. Check, too, to see whether there is an annual fee, or charges for exceeding your credit limit or even for closing an account.

3. Avoid amazing grace-period tricks. What you’re looking for is a provision that says you’ll never be charged interest as long as you pay your bill in full by the due date. But some cards have no grace period, calculating interest from the moment you make a purchase, while others give you only a limited time after making a charge before interest is imposed. That period of 20 days or so may end before your payment is due.

4. Don’t forget to cancel cards you no longer use. If you don’t, they’ll show up on credit reports, and that could be a problem, particularly if you’re applying for a home mortgage. Your would-be lender may be reluctant to make a loan to someone who has a cumulative credit-card limit of $50,000, $100,000, or even more.

Credit card companies offer varying benefits and promotions to entice their customers to use their credit cards not only in their everyday purchases but also for major buying decisions.

One of the promotions that credit card companies have is the rewarding of points to their users for every purchase that they make.

Different credit cards have different product features, benefits and ways of providing rewards to their users. A frequent traveler credit card that is made available in the market to those who are frequently flying can avail of the rewards points their card companies provide to them by converting these rewards to frequent flyer miles. These frequent flyer miles is then converted to actual miles that can be redeemed from airline companies that is co-sponsoring the credit card promotions with that credit card company. The frequent flyer miles are not always equivalent to the actual miles required to travel to particular destination. Some credit card companies reward the credit card user with 1 flyer mile for every dollar spent on his purchases. Different purchases mean varying reward points. Retail companies that may also co-sponsor those credit cards available in the market today may have higher reward points equivalent for purchases made on those credit cards to promote the sales of their products too.

Citing the frequent traveler credit card rewards system for example, a card user who purchases groceries, gas or technically his daily purchases, may have an equal travel reward points awarded to him for every dollar he spends on his regular purchases. On the other hand, should he ever buy plane tickets from an airline company co-sponsoring the credit card heís using, the reward points that he may earn may be higher as this is also one way to help promote the airline companyís latest promotions or travel packages.

Once an individual credit card user has accumulated enough points from his purchases, he may then redeem them for equivalent rewards. The higher the accumulated points, the higher the value of the reward he may redeem. Appliances such as a big flat screen tv or electronic gadgets such as a notebook PC are some of the possible rewards that credit card companies may offer their users when they redeem their rewards points. For smaller accumulated rewards points, a not so frequent credit card user may also redeem their points for rewards of smaller value such as a personal wall clock or a desk calculator. Credit card companies have different rewards for various points accumulated on a specific time period.

Received my monthly “You’ve met your requirements” letter that states I will be getting 6% APY:

“For the cycle beginning 08/29/08 and ending 09/29/08, your account qualified. To receive the highest rate of interest and ATM fee refunds”

However, this was also attached to the email:

“Beginning in October you will need to make 13 debit card transactions.  We are also going to cycle your account after month-end.  Transactions must post to your account by the last business day of the month.”

So, if you have a turbochecking.com account, please keep this in mind.  Won’t really effect me, as all it means is buying chips or a starbucks tea 3 more times a month… I can handle that.  I hope this isn’t a start to a slippery slope however.