Credit Card Debt Management

You may have racked up some hefty bills this holiday season with travel alone, not to mention gifts, decorations, baking, cards, tipping, party hosting, etc. Why not start now planning ahead for next year? Some might think that planning for the next holiday season while coming down off the rush of the current season can lead to mental instability, but your wallet will thank you.

Ironically enough, your wallet holds the key. If you simply must get out to see Great Aunt Myrtle in North Carolina next Christmas, but the distance is too far to drive, check out the Miles by Discover card. It offers double rewards on food and travel-related purchases, and one mile for each dollar spent on all other purchases. You receive one travel credit with no blackout dates on a major U.S. airline each time your mileage points reach 5,000. APR is quite competitive at 10.99% to 18.99%. Of course, this card is for those with elite credit. Apply for Miles by Discover through the Banks.com web site or check out our full list of airline miles rewards card. Rack up airline miles yearround and remove at least a little stress from your next holiday season.

Consumer Reports conducted a survey of 36,000 credit card holders and the five top dogs in the industry got mid-level rankings. Surprise, surprise…

The most common complaints about these five (which have a combined 80% stranglehold on the MasterCard and Visa market):
O Unfair late fees
O Unexpected interest rate increases (due largely to Universal Default Clause, according to the report)

Providian actually ranked worst on unexpected interest rate hikes. Consumers stated that their bills arrived too late for them to make payments on time and they were often charged late fees even when payment was submitted a week before due.

The five powerhouses in question to which we made earlier reference: JP Morgan Chase (boo-hiss), Bank of America, Citibank, Capital One and HSBC. American Express and Discover fared better, with average interest rates of 14 percent, according to the survey. Nordstrom’s department store and Cabela’s sporting goods mega-retailer both had favorable reviews for their Visa credit cards, which typically carry around 14 percent on average.

The report also showed that credit unions got some consumer love, which is a no-brainer because credit unions have a long history of being for the people, by the people. Before you fill out that application, you are in the driver’s seat. Be smart, shop around and read the fine print. Use this report as a roadmap because 36,000 consumers tell no tales. It can save you a lot in future interest charges and late fees.

Seeing as Discover fared so well in the Consumer Reports survey, we may just have to forgive their lapse in judgement by advertising their Motiva credit card with a sun running on a treadmill. At 14% average APR, it seems a little less ghastly.

So we have discussed the pros and cons of giving teens credit. Soon we will discuss the joys and potential pitfalls of business owners relying on credit. For now, here is a list of credit cards for business owners.

This list includes my personal favorite, the Advanta Platinum MasterCard. This power-packed card, recommended by SmartMoney magazine, offers 0% APR for 16 months and 7.99% fixed APR thereafter on balance transfers, 7.99% variable APR on purchases, $0 fraud liability, your choice of 5% cash back or travel rewards and no limit on rewards earned.
Business credit cards are truly better than consumer cards in so many areas, so take advantage of them if at all possible.

Also in the meantime, here’s something to cheer about.