But it is a big deal.  When a huge portion of your monthly budget goes to servicing debt, it’s a big deal because that money could be going toward a better house, a new car or even just for something fun for you or your family.  Whatever it might buy is a lot better than it just being thrown away as interest on a ridiculously high credit mountain.

So as much as we all do strive for peace and keeping a positive attitude about life, in order to get some motivation to get out there and defeat this monster we call credit card debt, it might be time to get good and angry about the way credit cards handle our accounts and find the guts to finally find a way to just up and fire them.

In the retail world, it is a crime to use false advertising or pull off hat is called “bait and switch”.  Bait and switch is a tactic where they advertise a price for a retail item and then when you get to the store, the price is wrong on the shelf or for some other reason (like, we ran out of the ones at the sale price), they bilk you into paying the non-sale price.  That’s cheating and it’s wrong.

Credit card companies are the international grand champions of bait and switch.  When they send you those glossy, well worded invitations to low interest, “no cost” credit cards, they have no intention of honoring that offer.  Oh sure, they might set up the accounts that way.  But if you read the fine print of what you are signing when you apply for the credit card, they retain the right to change the rules of how your credit bill is handled without notice and without restrictions.  That means that even if they said there will be no annual fee, they can impose one and there isn’t a darn thing you can do about it.

Even more outrageous is the fact that credit card companies can and often do raise the cost of what you are paying for the goods or services you bought using your credit card, again without any notice at all.  So if you bought a refrigerator on your credit card which at the time was charging 8% interest, the credit card company can up and raise your interest level to 20% overnight, with no reason for doing so and with no notice to you.  So what just happened is they jacked up the price of the refrigerator you bought and you have to pay it.  If that doesn’t get you good and mad, well, it should.

If you watch how the credit card companies handle your accounts, you can tell they are looking for any excuse to raise your rates.  If your payment comes in an hour late, they can double your rates.  And guess what?  They are the ones who determine if your payment came in late.  So if you mail it a week and a half a head of time, they can still claim it as late and jack up your interest rate and impose a huge penalty for late payment.

It’s just amazing and completely outrageous that credit card companies are able to change the rules of how you do business with them with no respect for you as a customer and with no intervention by any federal agency.  In fact, the concept that the federal government is in the pockets of the credit card companies is reinforced over and over again.

Getting good and mad about credit card debt can mobilize you to do some things that are long overdue.  It might be overdue for you to contact your congressman and start putting them on notice that we aren’t going to take this anymore.  But it is definitely overdue for you to see the credit card companies for what they are and fire them by getting rid of that credit card debt once and for all.

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The most common way for criminals to get credit card information is through phishing, which involves a fake email that appears to be sent from your credit card company.  Normally, this fake email states that there was an error with your account, or that it was accessed by unauthorized personnel and needs your attention.

Spotting fake emails isn’t hard to do - as long as you know what to look for.  The most obvious hint for most, is the fact that they don’t even have a credit card from the company that has sent the email.  For others, the link is what gives the fake email away.  Anytime you get an email from a credit card that you believe to be fake, you should always hover your mouse over the link, then “right click” the link with the mouse and select “view source”.  If the link is indeed fake, the website address that comes up will be something other than that of a credit card company.

The criminals don’t want you to look at the source for their website, as they simply want you to click on the link before you look at anything else.  Once you have clicked on the link, you’ll arrive at a website that is usually an exact copy of a credit card website.  Fake sites normally include everything that the actual site does, including the logos and banners.  Even for the most amateur of credit card criminals, web pages like this are very easy to create.

Those of you who have fell victim to this scam, probably realized what you have done little too late.  Once you have entered in your credit card information, you have done exactly what the criminals wanted and put yourself in violation of credit card fraud and identity theft.  Once the criminal has your social security number and credit card information, he is more than likely to use that information to go on a shopping spree - stealing your money and running up your account.

If you receive an email such as this, you should always delete it.  Even if you just click on the fake website to investigate, you may do more harm than good.  Even though you may not enter any information at all, your computer may get infected with viruses or spyware simply because you clicked on the link.  To avoid this altogether, you should never click on a link that you believe to be a fake credit card company website.

If you do your part and protect your credit card information, you won’t have anything at all to worry about.  Your personal information is very important, as you never want it to fall in the wrong hands.  As long as you protect it, you won’t have anything to worry about.  There are always criminals out there, which is why you should always be on guard.  Criminals want your personal information and your credit card numbers - it’s up to you to ensure that they don’t get it.  A criminal will do anything to get what they want, which is why protecting yourself is so very important these days.

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Many of the companies and individuals, which have bilked you he consumer, out of thousands of dollars have been put out of business and locked up for fraud. However, for every one that has been shut down it seems as if 3 more pop up. The sad thing is when the feds or the local state has shut them down; they simply pack a suitcase and move across the state line.

In some cases they simply change the name of the company and file for a new business license. In most states it is relatively easy to get a business license and open for business.

It is important for you to understand there are legitimate credit report repair companies. These companies will charge you a fee for doing the same thing you can do.

Here are some truths that you can do yourself without paying some one else to do it.

1. Disputed Debt: If you believe the amount of the money owed, shown on your credit transcript is wrong, you have the right to challenge it. You contact the lender with a letter or phone call, they have 30 days to respond. If they fail to do so you have the right to have it removed from your credit report.

Once the 30 days have passed it is your responsibility to call the credit reporting company and request it to be removed. Be sure you have a record of when and where you contacted the lender; you will need this for the credit reporting company to remove it from your report.

2. Bad debt shown but loan paid in full: Again if the loan has been paid off you have the right to negotiate with the lender and have it changed to “Loan Satisfied” or “Loan Paid In Full”. Even though it will remain on the credit report it will show others checking your credit you made it right.

3. Loan Negotiation: If you have failed to pay a loan on time or have defaulted on the loan, you have the right to try and make it right.

You can call the collection company or the lender and negotiate a settlement of the loan. Often times this could end up reducing the loan to pennies on the dollar. Once you have the reduced amount paid off, it will appear on your credit report as paid. Although it will reflect a reduced pay back it will show you have taken the necessary steps to try to make it right.

Folks you need to understand that the only way to do a legal credit report repair is to pay your debts. The debts you have paid late and defaulted on are going to be around for 7 years or longer. You heard right or longer being the keyword.

An example of this would be say if you have a defaulted loan in the year 2000. Normally it could drop off your credit report in 2007. However, you started to trying to clean up your credit report in 2005 and started a new pay back. Guess what? Its going to be on your credit report until 2012. But yet if you clean it up it will be for your good.

Credit report repair can be a long road, but you will find when you work at it, it will all be worth while.

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Chances are you have seen the ads for “Legally Repair Your Credit Report”, “Wipe Your Credit Report Clean In 7 Days”, “Buy A New House With A Clean Credit Repot” etc. You have been sitting in your favorite recliner watching the TV and suddenly somebody starts telling you can have a clean credit report in as little 30 days.

Hold on to your wallet if you are thinking about calling them. No matter what promise these companies make, bad credit transactions are going to stay on your personal credit report. They cannot wave a magic wand and make your bad debts vanish; like magic.

What you are hearing and reading is a first class con job, being played on desperate people. Many of these companies have been put out of business by the FTC (Federal Trade Commission) and local states Attorney General. The sad part is there are those that remain in business and continue to rake in $1000.00s of dollars per month from unsuspecting people.

Even some of the companies still in existence are a fly by night operation. You pay them a fee from as low as several hundred dollars to a high of perhaps a thousand or more. They collect your money and the next time you call them the phone has been disconnected.

However, there are some that actually offer a legitimate service. But you are going to be paying them to do something you can do yourself. All they are going to do is take the list of your debts, fill in a form letter to your lenders and ask them to prove the debt. Hey! You can do your credit report repair yourself.

O.K. are you now asking how you clean up your own credit transcript. You are most likely not going to believe this but the process is simple, but it can take some time.

Several years ago, the Federal Government of the United States, made it mandatory that the consumer had the right to get a copy of his credit report once a year. So the first step you have to take is write or call the “Big 3”, TransUnion, Experian and Equifax, and request a copy. By law they have to send you a current copy of your credit narrative.

If you should find false information reported by a creditor, your next step is write the company about their false information. By law, in 30 days, they must either prove the debt or have it removed if false. However, if you find the reported debts on your report are accurate, this is where the rubber hits the pavement. Because they will remain on your report for 7 years or until you clean them up.

When you hear the outrageous claims made by these companies, the old adage applies; “If it sounds to good to be true it probably is.”

In Part 2 of “Discover The Truth About Credit Report Repair” it will give you more information on how you can legally clean up your own credit transcript.

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Most people’s answer to that question will depend on how they treat their “old plastic” as credit cards are known.

For many with burned fingers will tell you they didn’t realize that things had gotten so bad until very late, because most credit card offers try much to sound like they are actually running a charity. Well, they aren’t.

And this is not a hate campaign against credit cards. Surely they have their benefits - in America if you want to rent a car, you got to have a (major) credit card.

But, consider this scenario: You receive an offer in your mail that sounds good, maybe it’s a new generation TV or a fridge. But it costs $2000. Oh, but you have a credit card with a $5000 limit, and you immediately purchase your merchandise.

Typically, here is how your repayment schedule will play out. Most credit cards charge a minimum of total balance (usually 2 percent) of the total per month.

Assuming the interest rate is 18 percent and you choose to repay the minimum amount of $40, $30 of that will go towards interest and only 10 percent towards the principle.

As a result, you will take 30 years to repay and end up paying over $5000 interest.

Sounds scary? It doesn’t have to be. The moral of the illustration is: Use the credit card the same way porcupines make love; very, very carefully.

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Use Credit Cards Wisely
Credit cards can indeed make life easier but only if you will be a responsible owner and use it only in emergency situations. It is okay to indulge on your guilty pleasures every once in a while. But you have to check if you are still spending according to what you earn. This way, you will not be surprised one day to find yourself in a big mess concerning your debts.

The more credit cards you have, the more tempting it will be to spend on things even if you don’t really need them. So think really hard before you acquire a new card. The more debts you have, the harder it will be for you to pay up. This holds true despite the various payment schemes that are made available by the credit card companies.

Here are some thoughts that you can ponder about to be able to achieve success in managing your credit card debts.

1. If you find yourself in debt with more than one credit card company, analyze the situation before it is too late. Look at what you are faced with and think of ways to alleviate yourself from the situation. First, look at the debt that is gaining higher amount of interest. You need to allot more money for its monthly payment. This way, you will be able to stop the amount from ballooning until you can no longer control it.

But that doesn’t mean that you will look beyond the other debts from the other cards. You must pay at least the minimum amount due monthly. You can allot more once you have finished paying the card that has the highest amount of debt.

2. If you can afford to pay off your cards on a weekly basis, the better. This way, you will not be pressured come the cards’ due dates. Without the said pressure, you will be able to focus more on how you will be able to pay up for your remaining debts.

3. Live within your means. If only people will religiously follow this adage, life will be easier to lead. If you will only learn to value your money and budget it wisely, you will no longer have to resort to credit cards for your immediate needs. Bring cash with you wherever you go. This way, you will be able to control your spending. Being too much dependent on credit cards will not do anything good. So you have to break away before it is already too late.

You must learn the ropes through credit card management before it is already too late. You must control your debts. It must not be the other way around. You can still use your credit cards every once in a while. But make sure that you don’t let your debts become uncontrollable. Spend your money wisely and learn to control yourself from giving into temptations.

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While there are many types of bankruptcy out there, the most commonplace are chapter 7 bankruptcies and chapter 13 bankruptcies of the bankruptcy code.

Chapter 7 is the most common for the individual. It is the complete erasing of qualifying debt. The debtor is then released from all repayment obligations. But chapter 7 bankruptcies are not to be taken lightly.

While giving you an immediate fresh start in repairing your finances, it remains on your credit report for 10 years. You will be looked at as a high credit risk and financially irresponsible.

Chapter 13 is less harmful to your credit. Though there are still marks against you, since you will be working to repay your debts on a payment plan, you do not look like you are financially irresponsible, though you are still considered a slight credit risk. Also, your qualifying assets will not be sold with the chapter 13 bankruptcy like they would in the chapter 7.

In 2005 an act passed legislation that now makes it more difficult for individuals to receive a chapter 7 bankruptcies. There are now terms to be followed such as pre-filing credit counseling and post-filing financial education.

So when considering your file for bankruptcy, it is important to weigh the sides between chapter 7 and chapter 13. Which one will do you more harm than good when it comes to solving your financial problems?

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So when you sit down and decide that its time you took seriously the challenge of conquering your credit card debt, you have some battles to fight that are not just about interest rates and minimum payments.  The truth is that none of us can face down something as overwhelming as a massive credit card debt if we just don’t think we can do it.

A person’s self confidence is rooted in the idea that he or she can and has had success at facing a challenge before.  So we can take on a new challenge because you did it before and you can do it again.  But when it comes to facing tens of thousands of dollars of credit card debt, it’s possible you have never faced such an elusive enemy.  It is an enemy that seems to want to swallow you up.  And that can cause despair and make you just want to throw up your hands and give up.

So the question comes, when is the best time to panic?  Well, you know the answer to that question is – NEVER!  This is not just pie in the sky optimism talking here.  There are some very pragmatic reasons that you should stubbornly refuse to panic no matter how bad the credit card debt threatens to get.

For one thing, if you are the responsible adult in the house whose job it is to handle the finances of the family, those people you love depend on you to guide your family out of messes.  This is the job of a head of household so the last thing they want to see is for you to come unglued because of a few bills.  So for the sake of the people you love, keep your head and keep looking for options and answers.

The other reason to not panic is that there is always something you can do.  You can get another job or find another income source to keep paying those debts down.  And as long as you can make the payments on any given month, there is hope the next month you will start to pull ahead.  As long as you have your health and there are jobs to be had, you can work and get out of this mess.  It might take some hard work but you can do it.

But even if you cannot work and the bills keep getting higher and higher, that is not a good reason to panic.  You can renegotiate with lenders to get some control over the debt.  You can use a credit consolation service to get your payments down and get on a schedule to pay them off over time.  And at the very end of the spectrum of what you can do, there is bankruptcy.  And as bad as that word sounds, bankruptcy is not the end of your world.  Lots of people use it and come out the other side of it fine and ready to take on the world again.

So take some heart in the fact that you really are not doomed and there is always a way out of the mess you are in.  It might take some looking, some creative thinking and some leadership to get there.  But you can only find those resources inside yourself if you stubbornly refuse to panic.

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Before applying for a high school student credit card, both students and co-signers should always look at their available options.  There are a lot of banks and credit card companies to choose from, which makes it in your best interest to look around.  Some cards will come with high APR and a high annual fee, while some are more reasonable.  With high school students not having any credit, some banks and companies will try to charge unreasonable rates - which is reason enough to do your research and know the best deal.

Co-signers can normally help students to make the best decision.  The co-signer will be going on the application with the student, and will be the individual that the bank or company will come to when the student is unable to pay the bill.  Parents and co-signers will know the best deals for credit cards, which is students should always ask them for help when picking out the ideal credit card.

For some students, prepaid credit cards can be an ideal investment.  These cards hold absolutely no risk for students, while they help to teach financial management as well.  With these high school student credit cards, the prepaid amount you have put on the card is your spending limit.  To ensure that the application for is filled out correctly, students should always have a parent or guardian assist them with filling the information out.

When a student gets their credit card, they should be instructed on how to properly use the credit card.  Although some students will be tempted to run up their high school student credit card, they should save it for emergency situations.  At the end of the month, they should try to pay their whole bill, to avoid getting into debt.  If a student can pay the bill - it will also help boost their credit.

If you are interested in a high school student credit card, you can always apply for one online.  The applications are processed in a timely manner, normally giving you a response in a matter of minutes.  Although credit cards are great to have, prepaid credit cards are sometimes the way to go with students.  If you are unsure - make sure you look into all options available to you and compare what you find out.

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What happens? How the payment is finally processed?

These are just some of the questions that even some card holders don’t bother to ask, either to themselves or anyone (it is a possibility that some store workers don’t fully understand it as well), so you are not alone.

Here are some quick hints.

Every time one uses a credit card to purchase something, several industry players offering different services then come forward to complete the transaction.

Once the card is swiped across a PoS terminal, the terminal electronically reads the cards holder information and then through a phone line, it asks for an authorization to complete the transaction from the processing network which is responsible for translating the information given at the PoS sale point.

The data is then sent to the issuing bank to check whether the account is valid and that the transaction is within the allowed credit limits.

The network is then triggered to send an approval code to the PoS terminal. The details are then saved at the PoS which are then sent to the processing bank at the end of the day which then pays funds into the merchant’s account.

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