Banks and their marketing associates and divisions are vying with one another to capture a thick slice of the "credit card pie." Offers by phone and mail of free credit cards, pre-approved credit cards, cards with special bonanzas, money back schemes, low introductory rates, and umpteen other perks pour in tempting you everyday.

A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.

Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.

Before you decide find out

The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.

The other side is that you can get carried away and live beyond your means, ultimately falling into debt.

To be eligible you need:

• To be at least 18 years old.

• Have some income or the backing of credit worthy parents.

• Have an operational bank account.

• A telephone.

• A good credit rating. Your monthly expenses must not equal or exceed your income. Ideal expenses must account for approximately 50% of your income.

• To get a Visa or Master card your income must exceed US$ 12,000 a year. Or, you need to apply for a secured credit card where you pay upfront a certain amount of money as security deposit.

There are many kinds of credit cards to choose from. Unsecured standard and classic cards are those with a credit limit of US$ 2000 and generally charge higher interest rates and offer lower or less favorable terms than the platinum and gold cards. Unsecured platinum and gold cards are for people with high credit ratings, and the limits for these cards are between US$ 2000 to US$ 100,000.

Here are a few links that will give information and opportunities to apply for cards online:

• Visa at www.usa.visa.com/?country=us&ep=v_gg_new provides information, gives tips, and has listed a number of financial institutions that offer Visa cards and a wide range of services. One can apply for a card online.

• MasterCard International at www.mastercard.com/index.html is comprehensive with information, advice, and options of choosing and applying for a card online. They have an online form which when filled will give information of which card would be ideal and a channel which provides instant comparison of various card options.

• CreditCards.com at http://www.creditcards.com/ has articles, FAQs, a site map, and online application channels.

Tips:

• Pick a card because it has the lowest APR.

• Pick a card because all its terms and conditions have been carefully vetted by you. Read the fine print.

• Never pick a card because it is free for a year or life.

• Do not choose a card because it offers a low introductory rate.

• Do not choose a card because it has a cash back policy or great rewards programs.

Choose wisely and live debt free.

With the popularity of plastic money these days, credit cards are gaining immense importance. With growing usage of credit card the number of people in debt and the amount of debt for each of them is also increasing at a fast pace. Almost every household in the US today is undergoing the threats of debt problems. People undergoing credit card debts should ideally opt for debt consolidation in order to lead a debt free life. In the US more than half of the population has an average of $8000 debts, only because of the usage of credit cards.

You must be eager to know:

• How is the process of debt consolidation beneficial to settle credit card debts?
• How is it useful to consolidate my credit card debts?

A credit card debt consolidation loan can be a resource to consolidate the outstanding balances on your cards into one single loan. They can also be transferred to one single card that has a lower interest rate than the ones you are currently paying. The path to savings should be very cautiously chalked out and one needs to make calculated moves all the time. It is advisable to opt for credit cards with low interest rates rather than paying high interest rates for some credit cards. Calculate the interest on your credit card debts and transfer it accordingly. We offer free membership.

The ideal way to consolidate your credit card debts!

For better understanding find out how consolidating your credit card debts can be helpful.

Let's say you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card is 18 %. If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidate your credit card debt into a single loan with a lower interest rate or if you do a balance transfer onto a credit card with a low interest rate you would save a significant amount of money.

If the new loan or credit card have a 9% APR then you would save roughly $10 in interest charges over the course of that same year. If you save $10 for a debt of $100, then think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Just think of $100,000 debts; you can save $10,000. And this amount of $10,000 can be used to repay some of your debts. Life becomes easy with simple calculations and cautious moves.

If you are undergoing major debt problems feel free to contact us. Our experts will help you to consolidate your debts and restore your financial position. Consolidating your debt is perhaps the fastest, safest and best way today to get rid of your financial obligations and we are experts in this field. Fill our free membership form to view all the alternatives. With debt consolidation we are here to consolidate all your financial loans in a single monthly payment. We help you in your journey towards being debt free.

Where large sums of money are concerned, it is advisable to trust nobody. Agatha Christie (1890-1976)

You notice I called credit cards by their real name. Make no mistake, the outcome of using a credit card is to create debt. It would be a lot more difficult to market a "Debt" card but that is what they are. In case you weren't aware of it, Federal regulators are pressuring banks into raising the minimum credit card payment from 2% to 4% to "help" consumers get out of debt quickly but somehow failed to address the usury interest rates charged by these companies.

Here are a few things you might not know about the credit card industry.

Credit Card Industry Facts:

The credit card industry earned $1,200,000,000,000 last year. That is $1.2 TRILLION in profits.

In 2004 consumers were charged $14.8 BILLION dollars in late fees.

Here's a cute little tactic used often by our credit card brethren. Not posting your payment on the day it is received so that they can charge you the late fee. They made millions using this technique last year.

Changing the due date or mailing the bill so that it is difficult at best to meet the deadline and there by charging another late fee. With two late charges on your 'record' your interest rate goes up as much as 10 points. This can be done without notifying you, by the way.

These companies have even resorted to not mailing out statements so that you will pay late and therefore be charged at least $29 in late fees and sometimes more.

Signing you up without your permission for credit insurance that virtually never pays out.

Checking your credit reports to see if you are charging on other cards and if it is 'deemed excessive', raising your interest rate by as much as twice your current rate.

Charging you a $25 fee for NOT USING your credit card.

Capital One has been sued because their customers mailed in the checks a full two weeks before the due date but were deemed late, charged the late fee and the interest rate was hiked to double digits.

Citibank paid a $45 million dollar settlement because they improperly assessed late fees and raised the interest rate up to 24% if the customer was late on any payments to other creditors, even if you are current on every payment to them.

The largest settlement by far against a credit card provider was against Providian for $300 Million dollars! Why? For improperly assessing late fees and charging customers for things they never ordered like credit insurance. The amount of the fine was proportional to the amount of abuse.

Sometimes because of the stress associated with these fees and abuses, people go out and try to borrow their way out of trouble with debt consolidation loans. This only adds to the problem if they don't tear up the cards.

Credit card debt has gotten to the point that it is not like owing the general store and not paying off the bill at the end of the month or when you get your next pay check. This is loan sharking at its worst and some say the rights of individuals were taken away by the changes in the bankruptcy laws made recently due to the efforts of lobbyists from the credit card companies. I think the little guy needs help and that is why I wrote this book. There is a term used often in Real Estate: "Operating from a position of superior knowledge". One can get sued for taking advantage of another for just this reason. Seems to me, the credit card companies mentioned above along with many others, are operating from a position of superior knowledge.

According to Robert Hinsley, a Houston attorney, "Being a good customer is not going to protect you," says Hinsley. "Nor will paying your bill on time each month protect you. Many of the major cards -- First USA, Chase, Capital One, Providian, Citibank, Penney's -- have been sued over practices regarding unfair billing practices and blatantly using tactics to cheat you out of your money. There is plenty of evidence that indicates most credit card companies think you are dumb and helpless and will not take any action. So they can easily use dirty tricks to cheat you out of your money."

Now are you ready to fight back and negotiate a settlement with these people? Don't be discouraged because the good news is, you can fight back. You can negotiate and you can reach a settlement advantageous to you! Pull yourself up to your full height, take a deep breath, know you are not alone and let's get started!

Tips on Ways to Save Money

1. Leave your credit cards at home. Try to hide your credit cards ins a secure place in your home. If you take your credit card out of your wallet it is a lot harder to spend money. Use credit cards for emergencies only.

2. Switch your bank account if they are charging you user fees. You should not have to pay maintenance fees with a bank and you should be receiving a competitive interest rate.

3. Have people over instead of going out. Have each person bring their own appetizer, games, alcohol etc. This will save you tons of money on entertainment bills.

4. Ask for a rate reduction on your credit card. Call your credit card company and let them know
that you would like a reduction on your rate or you will take your business somewhere else.

5. Make sure to drink more water. By drinking more water you are not only gaining health benefits but you also tend to eat less. Therefore saving money on food consumption throughout your day.

6. Always eat breakfast. Breakfast provides energy throughout your day, and will deter you from purchasing snacks throughout your day.

More tips to save money