Members of the Senate Banking Committee are set to begin their first consumer-orientated examination of the credit card industry today, to examine ways in which they can tighten billing, marketing, and disclosure rules have led to what some see as high consumer debt and excessive fees. New Banking Committee Chairman Christopher Dodd is heading the examination, and said he plans to enact legislation that would require credit card companies not to raise fees and interest rates on card-holders who want to cancel a card and disclose the length of time required to pay off balances when making only minimum monthly payments.

Meanwhile, The American Bankers Association, which represents credit-card issuers, says it respects the Senate's rights to look into card industry issues, but cautioned them to act carefully. Ken Clayton, an industry's card policy head, said that he hope that Congress will take no action that directly or indirectly increases consumer costs, reduces availability of credit or otherwise limits competition or innovation in this very dynamic industry. The meetings also come just as several major credit card companies are preparing to IPO - most notably Real Visa, which would join MasterCard and American Express as public companies. Overall, decisions made in these meetings could have wide reaching implications that could affect both consumers, credit card companies, and their investors.

Charity credit cards, or "affinity" credit cards, get their name from the bond between a charitable advocacy or other non-profit organization and a credit card company. These cards are sometimes offered exclusively to an organization's donors or members. Most of these credit cards, however, are issued by banks and credit card companies under agreements worked out with individual charitable organizations. These cards are similar to other credit cards but have an additional feature - this specified charity receives a financial benefit from the credit card company. The ideology behind a credit card that supports a non-profit organization or charity is brilliant, but the process may not be equivalent, or even valid. There are some factors to consider before deciding to apply for an affinity credit card to which supports an organization you are familiar with.  

Each credit card is different, and offers vary in terms of how the charity benefits, as well as the terms of the credit agreement with you. The charity usually receives a benefit in one or more of the following ways: a certain percentage of each of your purchases every time you make a purchase with the card; a certain dollar amount every time a new customer signs up for the card; or a portion of the annual renewal fee for the card.

You must read the promotional literature in order to understand exactly how the charity will benefit. For example, one affinity card offered declared that a specified national charity would receive half of one percent of all transactions made with the card (that's 5¢ for every $10 you purchase). If the financial benefit for the charity is not spelled out, ask before signing up. It is also important to consider the specific terms as you would any credit card offer, including the amount of interest rate or finance charges along with the annual fee, if any, the late fees and over the limit fees, if any, and the length of the "grace period."

However, do not apply for an affinity card for the purpose of tax breaks. Any amount that the charity receives from your involvement with an affinity credit card cannot be used by you as a charitable donation for federal income tax purposes. The "contribution" is actually being made by the credit card company.

Affinity credit cards can be worthwhile if they meet your criteria and if the charity, of your choice, actually benefits from it. As with anything, take a few minutes to do your homework and you will make a better decision for the long run.

You may not realize it, but your house is large contributor to CO2 emissions - it's not just automobiles and factories that act as the greatest villains. Thanks to the innovations of such companies as Bosch and Kohler, they are offering more energy-efficient, or “green,” appliances. There is now a growing number of companies that are now turning their attentions to energy conservation. New appliances will help move the US and world to a more green lifestyle by Conserving water, lowering electricity usage, and reducing emissions.

Homes have a carbon footprint that we are now just starting to be aware of. If you consider driving to work and leaving your car running all day, that's the same thing as leaving your home home you leave when you go to work each and every day. As energy costs have skyrocketed since 2004, consumers are beginning to get the message, and so too are homebuilders and the home remodeling industry. Common household names like Kohler, Viking, Whirlpool, General Electric, Sherwin-Williams, and Dow are offering innovative, green product lines in a $40 billion-a-year industry that won't break your budget.

Until you may have access to a new washing machine and dryer, or a new refrigerator or oven, think about the simple acts you can take part in each and everyday to save energy - and money. Any elementary school student can tell you to turn off the lights in a room that isn't being used, just as you should keep your heat low or off if you are not home or in need of it. Energy bills are incredibly expensive these days, so do your best to keep your use of energy (and water) down around your house to help the environment and your wallet.

According to the National Retail Federation, U.S. consumers are expected to fork over almost $17 billion this year on Valentine's gifts for their loved ones. That's $17 billion spent on one day -- in the name of love.

Valentine's Day is the third largest retail holiday of the year. What about the theory of "money can't buy love?" This apparently is a changing mindset as we scramble to empty our wallets in order to show just how much we love someone. The average woman will spend $85 and the average man will spend $156 this Valentine's Day. This is a lot of money to show someone simply that you love them and care for them. Isn't it the thought that should count, not the price tag?

I challenge you to express your true feelings with gifts from the heart rather than from the wallet. And if you've already bought Valentine's Day presents for your special someone, that's okay - shower them with both kinds of gifts this year and apply this advice for next year.

This Valentine's Day, try to forget about the material goods and the cost of love, but look deep for some truly heart-felt creativity to express your love to that special someone. Cook an amazing meal instead of spending hundreds on a fancy dinner, or make your own gifts and cards instead of buying them. Think of all of them money you can save; you may even be able to save so much you could apply it to a romantic getaway in the future. Be wise on the money you spend, for you are not buying the love you already have.

Corporate credit cards are a convenient way to travel or entertain for business, just as they can also be your ticket to free vacations, home improvement and spa treatments. It does not involve charging personal accounts to your company, but it does require your employer to sign up for rewards programs offered through corporate credit cards.

First you must find out if your company allows its employees to reap the benefits of the card's reward programs. Not every company allows its employees to have full use, or any use at all, to its corporate credit cards, and for some very good reasons as rewards programs, particularly those offered by Visa and Mastercard, can cost companies money to sign up for. Also note that membership in such rewards programs aren't automatic. If you have an American Express card, you or your company will have to pay a $75 sign-up fee; similar fees are charged by other credit card companies, as well.  

It is a good idea to research what types of rewards are available. Most credit card companies provide a list of partner airlines, cruise companies and hotels. Some also have deals with electronics companies from Dell to Sony, while others allow you to purchase furniture from Crate and Barrel and other stores. Some rewards can also be found through concerts and sporting events.  It may take time to rack up points, so users must decide if it may be worth it.  

To reap the most of your rewards, see if you can combine points from your corporate card with your personal card in order to double your rewards points.  Before you begin your investigation into earning yourself some amazing rewards, inquire to your employer about working with/receiving a corporate credit card with a rewards program. It is always helpful to ensure the possibility that everyone in the company will find rewards that suit them, with nothing to lose.

Many Americans fear retirement almost as much as they strive for it. Some feel that they are behind in their savings, but fail to discover just how behind they really are. The key to solving this problem is to simply take action! Instead of wondering how behind you are, consult a financial advisor who can help you determine exactly where you are at and how you can achieve your goal. In fact, many studies have shown that the very act of seeking financial help can drastically improve your odds of success.

Begin by first collecting all of your financial information, such as your 401(k) plan, bank statements, brokerage records, estimated social security benefits, and any projected pension or retirement plan payouts. With this information, you can do a basic calculation on your own to see how much you need to save each month in order to retire comfortably. There are many online retirement calculators that can help you with this. Then, if you find that you are quickly falling behind, it is best to contact a fee-only financial advisor who can help you find ways to get back on track. Remember, the sooner you find out about your situation, the more quickly you can correct it - there is no sense in procrastinating!

You have hundreds of them, maybe even thousands - it's money in your pocket, and it's everywhere. Spare change is cash waiting to be exchanged. Do not just toss your spare change anywhere, against the fact that most people find it in pockets of their clothes, on dressers, in drawers, and left at the bottom of backpacks, purses and bags. Each day, take your change and place it in one place, such as a specified change jar. Many people have been using a change jar ever since they were little, and even to this day the practice is still embraced by many. It doesn't necessarily have to be a jar either; it can be a cup, an old cigar box, etc. The point is, don't throw away your change or lose it, for it is valuable money waiting to be exchanged into cash.

Save up all of your change for special savings, an "indulgence" savings. Your change should be a gift to yourself, but you need to be patient with it for it to become a worthy amount of cash.  I would recommend only exchanging your change for cash every half year or year.  Also, it is most necessary that you do not dig back into your change jar to grab a few dollars in quarters here and there.  Even if you need to do laundry, your change in your jar should be considered sacred; don't touch it.

Some banks will only count your change and turn it into cash for a small fee, such as 2% or 5%, or for a minimum of $2 or $5.  However, some banks and most credit unions do exchange change for cash for free for their customers. If you don't want to bother with cashing in your change at a bank, consider bringing your change to a Coinstar machine, located at over 10,000 supermarkets. Coinstar charges 8.9% to sort and count all those coins you saved.  However, it may be worth it.  If you have $30 worth of coins, 8.9 percent is $2.67. By the time you sort, roll and write your name and account number on the wrappers, it's worth the $2.67.  At the rate of paying 8.9%, you may also want to reconsider giving in to the smaller percentage charge at a local bank. Either way, your change can quickly be turned into a good amount of cash. Just think, if you save an average of just $0.30 a day everyday, you will have over a $100 within a year.  You wouldn’t throw away spare bills, so don't throw away your change!

When we think of debt, we generally think of middle to lower-classes.  However, this is not the case anymore. The nation's personal borrowings show that the upper-class is piling on debt faster than the middle class, though for very different reasons.

According to the Federal Reserve Board's Surveys of Consumer Finance, the nation's richest 1% took on $342 billion in new debt between 1998 and 2004, the latest year for which data are available. (The 1% represents households with net worths, including primary residence, of at least $6 million.) Economists say that debt number has probably continued to grow since 2004, because interest rates remain low by historical standards.

Just as the rich control a disproportionate share of national wealth, they also account for a disproportionate share of debt. The richest 1% now hold 7% of the nation's debt, with a total of $650 billion in borrowings, up from 5% in 1998. Debt for this group grew faster than for any other group in the Federal survey. Total debt held by the top 1% increased 150% between 1998 and 2004, compared with growth of about 100% for those in the 50th-to-90th percentile wealth range. The rich, in short, have joined the great American borrowing binge.

The reason behind the richs' debt?  Simply that they are continuing to buy and buy and buy.  After buying a few homes and funding ever-more lavish lifestyles, today's risk-friendly rich are embracing debt as a way to expand fortunes and fund increasingly materialistic lives.

Yet, there are some differences in the borrowed funds for the rich in comparison to the rest of the nation. Unlike many lower-income Americans who rely on credit cards and home-equity and other loans to meet living costs, the rich often use debt as a financial tool. Their debt is generally used for mortgages on their primary or nonprimary residences, according to the Federal data. They may have plenty of cash to pay for their investments and "toys," but they would be better off keeping the money in higher-returning investments or businesses.

It is suggested that the rise in the growing amount of debt among the rich stems in large part from the growing pressure among the elite to keep up with richer peers. The biggest differences in wealth today are among the rich, with simple millionaires getting shoved aside by decamillionaires, centimillionaires and billionaires.

In short, there is continuous game that involves the top 1% struggling to keep up with the top 1/10th of 1%," he adds. Those people trying to keep up with the top 1/100th of the top 1%. There is a drive by the merely rich to keep up with the obscenely rich.

To build up savings, you must learn first to save money before spending it.  We all have the great ability to spend money, but you need self-discipline to save that money instead of spending it. If your bank can't link your checking and savings accounts, or if you find it hard to control your spending when access to your savings is easy, ask your employer about direct deposit. You can have money taken from your paycheck and placed in a savings account automatically.

Combine your savings and checking accounts with an ATM card. Set up three savings accounts, each for a different use or goal. For example, one may be for emergency cash, a second for expenses and unexpected bills, and a third for investments. Carry your debit cards only when you really need them to make transactions, and withdraw only what you need for one week; this should curb your temptation to withdraw cash for impulse purchases.

As for paychecks and paydays, put only the money you need to live on for one month (or two weeks, if you get paid every two weeks) into your checking account for expenses and bills. Also, if you can, put money equivalent to one month's expenses into your expenses account for unexpected bills. The idea is to build at least a small stash so you're less likely to use your credit card if your car needs a new tire.

Begin building an emergency cushion by depositing a portion of each paycheck into your emergency savings account. If your goal is to have three months' living expenses, you could reach your goal within 30 months by saving 10% of each month's pay — or in 15 months by saving 20%.

Place the remaining money into your investments account, including found money such as birthday and holiday checks, bonuses, or money made from a garage sale. If you get a raise, put the difference into this account on a regular basis.

Nearly two-thirds of college students carry some type of debt. Late payments are also rising, as college students are suffering more than any other American. Nearly half of college students struggling with debt have stopped paying their debt(s), forcing lenders to "charge off" the debt and sell it to a collection agency.  If not that, then they are having their cars repossessed or they are seeking bankruptcy protection.

Over half of college students feel that they face tougher financial pressures than young people did in previous generations. About 30% of students frequently worry about their debt.  Although the percentage of people ages 22 to 29 with debt has declined, their total debt is up 10% from five years ago, to an average $16,120.  Every type of debt, from credit cards to college to personal loans, has risen.

Student-loan balances rose 16% to an average of $14,379; revolving debt, including credit cards, surged 24% to $5,781; and total installment debt, including student and personal loans, rose 4% to $17,208. The fastest-growing group of financially-troubled college students owes $20,000 or more in student-loan debt.

Debt has forced some young people to change their career plans. Of those surveyed, 22% say they've taken a job they otherwise wouldn't have because they needed more money to pay off student-loan debt. Three out of ten students have delayed or discontinued further education because they have too much debt already.  Of these college students, 26% have put off buying a home for the same reason, just as a smaller percentage say they've put off marrying (11%) or having children (14%).

The last resort for people with an excessive debt load is bankruptcy. While many cases can be resolved with credit counseling or debt negotiation, some amounts are simply unmanagable. In these cases, personal bankruptcy may be a final resort. There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7 - each filed in a federal bankruptcy court. As of April 2006, the filing fees run about $274 for Chapter 13 and $299 for Chapter 7 while attorney fees are additional and can vary. The government would rather see consumers seeking debt relief with bankruptcy under Chapter 13 rather than Chapter 7.

Chapter 13

Chapter 13 allows people with a steady income to keep property that they might otherwise lose through the bankruptcy process, such as a mortgaged house or car. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a period of three to five years, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.

Chapter 7

Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official, a trustee, or turned over to your creditors. There is an eight year waiting period after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.

Both types of bankruptcy may rid you of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets, although exemption amounts vary by state. Personal bankruptcy, however, does not remove child support, alimony, fines, taxes, and some student loan obligations.

The Senate Banking Committee held a meeting last week with representatives with some of the top credit card companies in the United States, including JP Morgan Chase, Capitol One and Barclays. Most of the meeting centered around credit card industry trade practices and making credit card terms easier for consumers to understand. Consumer advocates attending also brought up a host of other concerns as credit card delinquency fees continue to rise from just $1.7 billion in 1996 to a staggering $17.1 billion last year. One of the biggest concerns dealt with the ability of credit card companies to change the terms of their agreements with just 15 days notice - this is despite most credit cards having expiration dates several years in the future. What else can be done to improve the situation? Well, here are some other suggestions brought up at the meeting:

1. Universal Default Pricing - This is a policy that enables credit card companies to increase your rates (even if you were a model customer beforehand) if you're late on bills on other accounts, or if your credit score falls.
2. Double Cycle Billing - This is a policy that enables credit card companies to charge interest on an amount that you have already paid back. For example, if you pay $900 of your $1000 credit card bill, some credit card companies will charge you interest based on the full thousand until the remaining $100 is paid off. While bank loans operate in a similar way, many feel that credit card companies should discontinue this practice.
   
3. Zero Tolerance Late Fees - Often times even if you pay off your bills an hour late, you're hit with a $20 to $50 fine and associated rate increases as well. Many argue that these people who make accidental late payments shouldn't be grouped with those who are months delinquent on their bills.
   

Sen. Dodd said that the hearing would be the first of several to examine credit card practices. While it's not clear whether any legislation would result from the effort, many hope that lawmakers and the credit card industry might try to come to an agreement on best practices. But Dodd did issue a warning to credit card companies during the hearing: "If you currently engage in any business practice that you would be ashamed to discuss before this Committee, I would strongly encourage you to cease and desist that practice. Irrespective of the current legality of such practices, you should take a long, hard look at how you treat your customers."