For many of us, credit cards are to easy to use and much too difficult to pay off.  They have massive rates of interest, penalties, fines, you name it they seem to squeeze every penny out of you.  If this is you, then you may be interested to see out list of 7 alternative uses for your credit cards (feel free to add more!) :-

• Opening your door when you have forgotten your keys.  We have all see this in the movies, does it work? Who knows, but it’s a nice idea - James Bond eat your heart out.
• Scraping the ice / snow from your car windows in the winter time - what better use could you have, using that red hot card to cut through the snow!
• Is you garden in need of a good weeding? Can’t quite get into the cracks between the paving stones?  Never fear, use your credit card to get in between and force up those pesky weeds.
• Is your car tyre a little worn, does the tread need renewing? Check to see if you are legal with your credit card - use it to get between the cracks and see if the depth is ok.
• You now have yourself a wallet of new miniature rulers - cheap, although rather small, they do allow you to draw right angles as well!
• Painting! Whether you are looking at painting a wacky picture, or just stir that old tin of paint, that credit card will come in handy.
• The ultimate use for your credit card - balancing that wobbly chair.  That way it is useful and out of sight, so you cant use it any more.

If you have any more ideas, please feel free to add them.

While there are very few areas of finance which will not be directly effected by the ongoing credit crunch, which originated in the US but has since spread to all of the major economies of the world.  The fact that the lack of liquidity is having an immediate impact upon the supply of credit, and may well see short term money market rates pushed higher, will have a major impact upon credit cards.  But why?

Credit cards themselves are the most basic of debt instrument, and for each customers debt there needs to be a funding arrangement in place to cover that liability, if the person were not able to play.  The fact that short term credit rates have increased in the money markets, will soon impact upon everyday life - unless the situation can resolved as soon as possible.

While the financial institutions will try to resist any major changes for as long as possible, they cannot carry this short term increase in cost forever. There are many optimists in the market who feel the effects will be short lived, but we have only just seen the start.  Those companies already effected deeply by the situation, such as the original sub-prime lenders, will be trying desperately to reorganise their finances.  Those that fail will soon make their bad news public, which will see a sharp drop in confidence in the sector, putting yet more pressure on other companies.

The news that China and other areas of the Far East have become embroiled in these complicated financial instruments does not bode well, with a number of prominent American institutions originally looking at Far Eastern finance to bail them out of their current predicament.  It may take some time to unravel, but slowly but surely we will soon see more bad news filtering through.

Are you an authorized user on someone else’s credit card? If so now is the time to consider applying for your own credit card. The reason why is that the new FICO 2008 system for determining credit scores will begin functioning soon and when this happens millions of authorized users on credit cards will see their scores plummet or disappear altogether. For example, if you do not have a credit card but you are an authorized user on your spouse’s accounts you may feel you have excellent credit and nothing to worry about. But, what happens if you want to apply for credit in your name?

You may be unable to simply because you don’t have a credit score anymore. Fair Isaac stated that using the credit of an individual’s well established and with a good credit rating to build credit for someone else, most likely a family member, is part of the problem in the mortgage market disaster. The claim is that individual with bad credit inflate their credit scores by becoming authorized users and as a result are approved for credit they do not deserve.

This may be the case in some instances but in most cases authorized users are legitimate users that deserve the credit score they receive. Husbands and wives as well as children are frequently authorized users and this helps them create and build their own credit rating. However, this is all about to end. It is believed that by mid September authorized users will see their credit score dropping and by the following year millions of authorized users will have been negatively impacted by the change.

It’s a shame that a few cheats have ruined authorized credit for the rest of the world. Now divorcees, children, and even people new to the country will have even a more difficult time establishing credit simply because they can’t find any credit card to approve for because they have never had any credit. It really is a vicious cycle because the best way to  receive a credit card approval is when you have had debt and paid it off. But, if you have never had debt how can you pay it off and build credit? Its’ a great question and one that has yet to be answered and maybe never will be answered.

IF you are an authorized user on someone else’s account and you have a current credit score then you should apply for a credit card in your own name. This may allow you to take advantage of the last minute credit score you have generated by the cardholder’s credit score. Otherwise your credit score will disappear and you will be without credit again. It’s a shame that these accounts won’t be included in credit scores anymore but they simply won’t. Because of this it is a good idea to get your own credit while you still can.

Forget the stock market, forget a savings account and get yourself along to the next big baseball game.  That’s what 22 year old Matt Murphy did and he is on the verge of a $1 million payout!

When giants slugger Barry Bonds hit his 756th home run on Tuesday, he started a major brawl as every fan in the stadium tried to pick up the baseball - and take away a momento from the game.  Murphy emerged bloodied, bruised and with the majority of his clothes ripped of his back as “over eager” fans fought for the prize - but he was able to hold the ball aloft. 

Barry Bonds goes into the records books with the most home runs by any player ever in the game, a move which is sure to guarantee him both hero status for the rest of his life, and a massive income from the game, merchandising and commercial activities. 

History shows that while memorabilia can fetch millions of dollars in the after market, it is vital that you “strike while the iron is hot” and sell while the hysteria is at its highest.  When Mark McGwire broke the single season score in 1998 the baseball from that game was auctioned off for $3 million, and Barry Bonds again was involved in another piece of history, hitting 73 home runs in 2001, but the baseball from that day “only” fetched $450,000.

Sports memorabilia has proved to be a very lucrative investment for many, although what is popular today may not be popular tomorrow.  It is a market which has been difficult to read, with many investors left red faced after rushing in to buy over priced memorabilia - on the other hand, some have made massive returns for relatively little investment.

As if the UK debt situation was not bad enough, with more and more people struggling to cover their monthly mortgage payments, it seems that many of the UK’s gamblers are using debt to fund their habits.  A survey by one of the leading money sites on the internet has unearthed evidence that one in eight of the UK’s gamblers use credit cards, overdrafts or bank loans to fund their habits.  How hs this happened?

It seems that the increase in the number of online gambling sites has led to a new breed of gambler, the home based player.  Twice as many online gamblers are using debt than those who use the more traditional bookmakers shops, a figure which again highlights the potential dangers of uncontrolled online gambling.  If the results of the 2000 people survey were replicated for the overall UK population, this would indicate a hardcore of 1 million plus gamblers, 75% male and 25% ladies.

There is no doubt that online gambling has opened up a whole new market, which is attracting a whole new style of gambler.  Increased credit facilities and more and more adverts about gambling sites are starting to take their toll, with associations such as Gamblers Anonymous and the like experiencing a large increase in problem cases.

The UK has one of the most tightly controlled gambling industries in the world, although it has proved difficult to regulate overseas websites which are out of the control of the UK authorities.  The US have attempted to curb this problem by attacking the online payment companies, a move which while highly controversial has had the desired effect.  Are the UK gambling laws about to turn full circle? Or is it full steam ahead for more casinos and  opportunities to gamble?

We have all learned that credit card debt is the worst debt to have. Not only do the high interest rates and fees make it nearly impossible to pay the debt off but not making payments on time can seriously damage your credit. So what options do you have to pay off your debt and save your credit? One great solution is to pay off your credit card debt with a home mortgage loan. There are quite a few reasons why paying off credit card debt with a home mortgage loan is a good idea.

Lower Interest Rates

First of all, interest rates on home mortgage loans are considerable lower than credit card interest rates. In fact, interest rates may up to 10% lower and that relates to a lot of money. The reason interest rates are lower on home mortgage loans is because these types of loans are guaranteed by real estate. As a result high interest rates are not charged because there is already a guarantee in place for the loan. This means that when you choose to pay your credit card debt off with your home mortgage loan you will save hundreds or even thousands of dollars in interest payments.

Improve Your Credit

Another reason why paying off your credit card debt with a home mortgage loan is a good idea is because it will help you improve your credit score. When you erase all of your credit debt, which means you are actually transferring it to a home mortgage loan, some incredible things happen. First, your credit score will begin to increase month after month. Then, you will have good credit, which means applying for credit is not as difficult. The important thing to keep in mind is that you cannot pay off your credit card debts with a home mortgage loan and then continue using them. Doing this will spell disaster and may result in losing your home if you default on the home mortgage loan.

Quick Cash

Another benefit is quick cash. Once your home mortgage loan is improved it will just be a couple days before you have the cash you need to pay off your credit card debts. That is great news because you will feel so relieved to have those high interest credit cards paid off.

There are many benefits to using a second mortgage loan on your home to pay off your high interest rate credit cards. However, the last thing you want to do is allow yourself to get behind on your mortgage loan payments because if you do it will become harder to catch up and if you fall too far behind you may receive a foreclosure notice. If this happens you may lose your home and in that case it is not worth paying off your high interest credit cards with a home mortgage loan. Just think about it, weighs the advantages, and then make a decision.

While we have all seen the news about the an going situation regarding bank charges, behind the scenes the Office of Fair Trading (OFT) have been heavily involved in trying to regulate the credit card industry.  A recent survey has shown that more than one in four of the UK population have been hit by credit card penalty charges over the last twelve months, with charges totalling some £230 million last year!

While the OFT have stepped in to try and avert a similar situation to the bank charges debacle, this income stream is still proving to be a useful revenue generator for the finance companies.  While the OFT have introduced a maximum penalty charge of £12 , many of the card providers have just re-arranged their fee structures with many increasing their standard interest rates, and others looking to introduce monthly fees where their earnings potential is lower.

While the bank charges investigation and the introducing of a price cap to the credit card industry were done with the best of intentions, it is looking as though the situation will back fire on the consumer.  Many financial institutions are already indicating that the days of “free” banking are already numbered - even though it is arguable that banking has never been “free” - with rumours of monthly fees and reduced services for those in various categories.

The landscape of the financial industry has changed somewhat over the last 12 months and it looks set to change a whole lot more over the next couple of years.  There is a definite sea change in the attitude of the financial companies, an attitude which seems set to target the customer for more and more charges!

As we continue to see UK base rates rise still further, the squeeze on income has never been tighter for many, with a larger and larger percentage of regular income going towards servicing debts.  For many people their credit card has become one of the main worries, with those unable to pay off their monthly spending beginning to suffer.  Are there any ways to alleviate the strain?

While the debt will need to be paid in full at some stage, there are ways in which the mounting interest charges can be reduced, and in many instances actually halted.  The process known as “credit card surfing” has been around for some time, although it is surprising the amount of people who have not heard of it, or do not use the process.  In deed the term “credit card surfing” does not really highlight the serious nature of the action, and the potential for great savings.

Even now with interest rates as high as they are, there is still massive competition in the credit card sector and while many offers have come and gone, there are still some very attractive promotions around.  It is still possible to transfer your balance to a new card, and take advantage of interest free periods up to a few months.  However, many credit card companies are now offering a fixed low rate on your transfer balance until the balance is paid off, leaving new spending on a “standard” interest rate.

As the credit card industry becomes ever more competitive the need to entice new customers with promotions has never been greater.  Many people seem to think that the savings will only equate to a “few pounds”, when in reality it can be much much more.  In this day and age every penny really does count, and you would be foolish not to look into the offers available.

Do not let the financial companies take you to the dry cleaners, and ensure that you are in full control at all times.

Credit cards have become a way of life for the majority of the UK population over he last decade of so, but those who treat them with a lack of respect can often find themselves in trouble.  Credit cards should only really be considered for short term funding arrangements, with the user certain that they can pay the funds back as soon as possible.  However, many have fallen into the trap of multiple cards, with offers for more and more cards dropping through the letter box on a regular basis. 

Is there an alternative to long term credit card debt?

The best credit card users are the ones who pay off their debts every month in full, although this is a rare occurrence with the UK credit card fraternity. The problems can easily count up if you fail to pay off the full amount, but continue to spend on your card.  Unfortunately it is very easy to push your debt up to £100, then £200, then £500 and further.  At some stage you will get to a level where you think another £100 will not make a difference in the long term, but is there an alternative?

For those not in a position to pay off what may have become a large credit card debt, they should be considering a personal loan to pay off and close their credit card accounts.  There are many benefits to this which include :-

· A drastic reduction in interest rate charges.

· A more structured debt management plan.

· Easier financial planning for the month.

· A path away from a life of constant debt and possible bankruptcy!

If you are liquid and have a decent income coming in on a regular basis, the banks will not have any second thoughts about lending you more and more money, increasing your credit card limit, etc.  However, if you bury your head in the sand and ignore an accumulating debt problem, by the time you realise you are in trouble it may be too late.

As soon as you realise that the majority of your income is going on servicing your debts, it is time to act!

A report issued today by the finance industry has highlighted the further move away from traditional cheques, with credit cards and debit cards set to fight it out for the UK’s most popular form of non cash payment.  The recent decision by ASDA not to accept cheques as payment, for what they describe as “increased processing times” is perhaps another nail in the coffin of the traditional cheque payment system - a system often criticised for being too expensive and taking too long to complete.

The report showed that debit card spending was the most popular form of payment last year, showing an increase of some 14% to £195 billion.  Cheque payments were still in second place, but showed a 12% drop to £164 billion, as credit card payments stayed fairly constant at £126 billion.  Debit cards have enjoyed a real boost in popularity over the last couple of years, perhaps replacing the traditional cheque and reflecting the increase in “safe financial planning” by many looking to stay within their limits.

Even credit card debt has been falling, having hit a peak of some £58 billion in January 2006, before settling at £54 billion in May 2007.  Its seems that a growing number of consumers may well be forecasting payment difficulties if interest rates continue to rise, hence the substantial reduction in outstanding credit card debt.  The problem now is that those who cannot afford to pay off their balances in full will see substantial increases in their interest charges over the coming months.  The withdrawal of a number of credit card cut rate interest offers often indicates more interest rate rises to follow.

While it is encouraging to see debit cards increasing in popularity, thereby ensuring that consumers only spend funds which they have in the bank,  credit card debt is still at a very uncomfortable level.  When the crunch comes (as it surely will with interest rates set to rise higher) it is those with high rate outstanding debt who have the most to lose.