The shopping season is approaching and many consumers are choosing to use their debit cards instead of a credit card this Christmas season. But despite their apparent safety, there are a few precautions you need to take to make sure that you don’t end up in debt despite avoiding credit cards this Christmas.

Keep close track of your spending. While debit cards are a lot better than credit cards in terms of avoiding interest, fees and debt that you need to repay, debit …

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… banks that are losing profits because of the new credit card legislation are now looking to debit cards and bank accounts to make up the difference.  The recently passed credit card legislation requires that banks give customers a choice on whether they want to opt into over-draft programs that can be costly.

The article said:

“That law only applies to credit cards, but lawmakers are now shifting their sights to debit cards. Last week, Sen. Christopher Dodd, D-Conn., said he …

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Just when you thought credit cards were the only plastic culprits you had to watch out for, prepaid debit cards are crashing on the watch list of consumer advocacy groups. Many Americans who have lost access to bank accounts and credit cards due to bad credit, wage garnishments or bounced checks are the biggest target of companies selling prepaid debit cards. Basically a prepaid debit card is a reloadable electronic …

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… in the Salt Lake Tribune, since the recession began many consumers are choosing prepaid credit cards over traditional bank accounts and unsecured credit card accounts.

How It Works

The consumer buys a prepaid credit card from a retailer, loads it with money and sometimes even creates a direct deposit account with their employer. The cards are used to pay bills and everyday expenses–just like a debit or credit card.  The biggest draw of the prepaid cards?  No Credit Check! Because …

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Years ago rebates were offered as checks; but now most consumers receive rebates via cards that can be burdened with a variety of fees and can be difficult to redeem.  And while the Credit Card Act covers both gift cards and prepaid cards, rebate cards will not be covered by the new law.

The Credit Card Act, which was passed last spring, established new standards not only for credit cards but also for gift cards and prepaid cards. Beginning in August, the law requires that …

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… to an article in Forbes, as study conducted by the Pew Charitable Trust found that credit cards offered by credit unions may offer lower rates and cheaper fees than their bank issued counterparts.

The article said:

“The study found that the median advertised interest rates for credit cards issued by the nation’s 12 largest credit unions were 20% lower than those for bank-issued cards. All told, the study looked at 400 financial institutions and was conducted by an arm of the …

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… I will call "credit card musical chairs." In an effort to keep their financial house of cards from tumbling many debtors use revolving credit to pay for even some of the most basic items such as food and rent, even withdrawing cash from one card to pay the minimum balance on another. But according to bankruptcy law, once a debtor begins to consider filing for bankruptcy if he/she uses lines of credit, the use of that credit may be considered fraud.

For example, if a debtor …

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The best and simplest way to avoid high interest rates on your credit cards is to pay off your balance every month. But for those of us who are already inundated with debt, doing so may seem next to impossible.  So here are a few tips on how to avoid high interest rates, even if you have a balance:

Pay your credit card on time.  This tip may seem obvious; but many credit card consumers fail to make timely payments and find themselves hit with a …

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For the past 10 years, our dependence on credit cards has grown exponentially. But as the credit crunch worsens many Americans are finding it difficult to fund the things they want or even need.  Christmas is right around the corner and if you don’t want to charge up a pile of credit card debt, you need to get another plan for paying for those Christmas gifts.  Layaway plans offer a great opportunity to pay for your Christmas gifts while …

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… a set period of time which is determined before you borrow the money. On the other hand, credit cards are revolving credit lines. With a revolving line of credit the amount of the loan is available “indefinitely” as long as the card is paid in a timely matter and the account remains open.

One of the biggest benefits of personal loans is that borrowers are unable to get trapped into a minimum payment cycle where they pay just the minimum while continuing to use the card. Many credit …

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Most credit card companies will send a delinquent credit card account to a collection agency after 180 days of no payment.  These delinquent credit card accounts are usually sold for pennies on the dollar.

Debt collectors who hold your credit card account are regulated by the Fair Debt Collection Practices Act and can be liable for violating the rules of this …

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… customers to refuse overdraft protection… JPMorgan Chase will provide overdraft protection for debit cards only for customers who opt in. And rather than debiting withdrawals and purchases in order of size, from largest to smallest, they will be debited in the order in which they were made. Overdraft fees Wachovia, owned by Wells Fargo, will eliminate overdraft fees for customers when they overdraw accounts by $5 or less, and will charge no more than four overdraft fees a day. The bank did …

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