Credit Card Debt Management

Interesting item in southern Mississippi’s Sun Herald yesterday. In light of the recent turbulence in the airline industry, it seems like hard-luck times for countless consumers who booked flights with airlines that are now defunct and considering bankruptcy. Those airlines include ATA, Frontier, Aloha and Skybus.

The funny thing is, the credit card companies these consumers used to book their flights are supposed to provide protection against such matters. It’s one of the selling points in getting a credit card in the first place. Fraudulent charges and misrepresented or undeliverable products or services typically result in customer refunds — except when the number of customers are astronomical and all at once. It’s a tough situation, but it’s also an opportunity for credit cards to show their true colors.

Chase and Discover are among the companies that provide instant refunds. Cards issued through Wachovia could require up to 120 days for refunds to be issued. The article further states that Visa and Mastercard apparently intend to do the same, and honor debit card purchases as well. That, however, may be a bit more complicated because bank cooperation factors in.

These card companies have deep pockets, to say the least. Undoubtedly, the airline ticket issues will be resolved over time, and it provides an illustration of why credit cards are a good bet for major purchases. Just make sure you pay off the balance at month’s end! If you can’t afford it, don’t charge it!

It’s a known fact that expense accounts can spiral out of control. This is as much true for government employees as for corporate employees, judging by recent news that federal workers were caught charging lingerie, online dating services, iPods and other superfluous items to government credit cards. In the current economy, few organizations can really afford extravagant spending in the name of client relations, let alone any stray personal items that may fall outside the bounds of company-approved purchases.

MasterCard has an answer. The inControl credit card will enable supervisors to set a spending limit and the time parameters within which spending can occur, list which hotels and restaurants fall under the umbrella of acceptable spending, and even receive real-time updates by e-mail or text message regarding what purchases are made with a particular card. It really is a remarkable service.

“It will help reduce maverick spending, improve compliance with corporate policies, and simplify accounting,” Steve Abrams, MasterCard’s global head of commercial payments, told BusinessWeek earlier this month.

Undoubtedly, the launch of this new product — offered in conjunction with Orbiscom technology and the Royal Bank of Scotland — will forever change the way business is done. Maybe Uncle Sam should sit up and take notice.

Gas credit cards have been all the rage. It’s little wonder in light of skyrocketing gas prices. However, oil industry experts say these cards’ popularity may be waning. From a consumer’s perspective, it’s easy to see why. The cards issued through the gas stations themselves are typically very high interest, like most retail credit cards. Furthermore, they limit drivers to only using one company, which can be very inconvenient on the road. CreditCards.com has a great article focusing on the different credit cards now being offered by Visa and MasterCard, co-branded with the oil companies.

The site’s list of the top 29 gas credit cards shows that there are a plethora of rebates, rewards and discounts to be had. In fact, rebates can be as much as 10 percent of the purchase of gas, as well as other items. That is probably the most appealing aspect of these cards — rewards can be earned for purchases other than gas. Additionally, your choice of gas station isn’t limited to the one whose logo appears on your card. Like most credit card offers, these usually come with a few caveats. Rewards may be tied to certain grades of gasoline and in-store purchases only may be eligible. Nevertheless, these offers may be worth checking out as travellers gear up for the summer vacation season.