August 2008

As teenagers become increasingly independent, it may seem appealing to encourage their independence and mobility by making them authorized users on your credit card. For kids with a limited sense of financial responsibility and an inherent tendency to give into peer pressure, however, the temptation of seemingly limitless buying power can forge an ugly battleground. If you are considering letting your kids use your credit cards, there are some things to consider.

With proper management of credit cards being an under-emphasized but highly-valuable life skill, many parents wonder how to teach their teens about responsible use. Fortunately, a careful approach to teaching your teenager about credit and credit cards can lead to a lifetime of good credit reports and conscientious credit use.

Do you ever find yourself eyeing something in a store, debating whether or not to buy it -- then finally deciding to put it on a credit card because you can't pass it up? When you did that, was your child watching you? Our actions, as parents, influence how our children approach credit card use. That's something we might want to consider when making impulse purchases.

Navigating the sometimes tricky path to successful credit card use can be difficult for senior citizens. Sometimes overly-trusting, it is easier for unscrupulous credit card providers to charge undisclosed fees or make unauthorized account debits that can severely damage the finances of older members of the population that are relying on savings accounts or fixed income checks to pay their bills.

Prepaid credit cards are gaining popularity as gifts and as tools for managing personal finance. The premise behind prepaid credit cards is that they are activated via the addition of funds, which are then depleted with each purchase until the card is "empty." Unlike gift cards, which can only be used at the issuing store, prepaid credit cards are accepted anywhere that a particular credit card is accepted, giving the recipient more flexibility with regards to the purchase choices. This also makes them an ideal way to control monthly spending.

Since the purchases made with a prepaid credit card have already been funded with a cash deposit, it is not possible to overspend your cash reserves with overzealous credit card swipes (when they need to be paid off later!).

As more consumers find their credit card debt is out of control, many are turning to credit card debt settlement as a way of getting out of the nightmare. The problem is, not all of them understand what a debt settlement really is and how it's going to affect their credit (and their taxes). Before you considering opting for this financial "out" there are some things you need to know.

Every time you check out at a store, you are likely to be asked if you would like to apply for a store credit card. The cashier usually tells you that you will get a certain percentage off of your purchase, which may seem like a great deal, especially if your bill is large. It pays to look beyond the perks and to the potential pitfalls, however, before you begin to rely too much on store credit cards.

As more and more Americans rack up credit card debt, credit counseling services are becoming an important part of the financial landscape for many families. Faced with mounting bills and an inability to manage their expenses or their spending, it often seems like the only way out of debt is to seek professional help.