However, what is more expensive than her treatments is her alleged penchant for unauthorized use of her celebrity clients’ credit cards.

CNN reports that the California spa owner has charged at least $280,000 to her clients’ credit cards. Liv Tyler is the major victim to the tune of $214,000 charged to her American Express Card.

Jewelry designer Loree Rodkin was the first to report the possible crime to federal investigators, alleging “Perez fraudulently charged numerous times on her Visa credit card from the studio.”

“Numerous times” added up to about $86,000 in charges, which Perez’s lawyer tried to settle by offering Rodkin $25,000 in skin care services.

KTLA provides the names of other high-end clients who were scammed by the high-end salon owner, including Jennifer Aniston, Melanie Griffith, Anne Hathaway, and Scott Speedman. After paying for services at the studio, extra charges would appear on the celebrity’s credit card statements.

According to CBS, the cards were not swiped, but rather the numbers on the cards were entered manually, which means that Perez was saving the numbers and then reentering them into her payment system after her clients left the office, hoping they would not notice the charges.

Perez has been arrested on two counts of fraud, and if convicted, could face up to 25 years in prison. Fortunately, none of her victims are facing chapter bankruptcy.

This isn’t her first run in with the law, though. Perez has previously been arrested for shoplifting and writing checks with insufficient funds. Perez’s attorney says that she will be cleared of all charges.

Two major credit card lessons you can learn from your favorite celebrities here?

• Know what you’ve spent on your credit card and actually check your statement every month. Too many people just check to see what the balance is and send in a check. Being sure that your statement is correct is the first step to fixing anything that’s wrong. Online banking can help you check the charges on your card more often, since you won’t have to wait for your monthly statement.
• If a charge does seem off, or if you suspect someone is using your credit card without your permission report it immediately and cancel the card! You will not be charged for the purchases the thief makes, so alert your credit card company immediately, and let them begin investigating the possible fraud.

The bottom line: Know where your money is going, no matter how much you pay for skin care.

Merrie Harris, an ad executive in New York, took a leap of faith last week when she loaned her credit card to a homeless man who ask her for some cash.

Harris was out on the town, reports the New York Press, and just leaving a restaurant, when she was approached by a homeless man. He asked if she had any cash so that he could get a Vitamin Water, and she responded that she only had her credit card.

Then he surprised her by asking to borrow it. She returned the surprise with one of her own when she reached into her purse and handed her card over.

Get information on filing Chapter 7 bankruptcy.

According to the New York Post, everyone with her thought it was the “dumbest thing,” and that she had crossed the line between charity and stupidity. Harris describes herself as an eternal optimist, but even she had doubts as she watched Jay Valentine disappear down the street with her corporate card.

She went back into the restaurant to wait for the man, while fighting against a sinking feeling in the pit of her stomach.

Fifteen minutes later, someone came down the stairs, yelling, “He’s back!” And he was back with his small purchases: a Vitamin Water, a pack of cigarettes, a t-shirt and deodorant.

She told him she knew he’d come back, and he responded, “Of course. I’m an honest person.”

Harris’s faith in humanity is wonderful, but she did call American Express, reports CBS News, just to be on the safe side. And sure enough, he purchased only those four items.

But the good news doesn’t end there, reports UPI News. After the story of the generous and trusting advertising executive spread on local and national tv news stations, Jay Valentine’s lucky streak just kept going. An anonymous man from Texas offered him $5,000 and Air Wisconsin at LaGuardia airport announced that he should apply to be a flight attendant.

Harris just believes that if you have a little faith in humanity, people will prove us right.

So what would you do? Would you let someone borrow your credit to get just a few items? Or would it stay safely in your wallet.

AT&T and Verizon want you to get rid of your wallet. Bloomberg reports that AT&T and Verizon Wireless are rolling out new software that will allow you to use your smartphone to pay for purchases. They will be teaming with Discover, currently the fourth largest credit card company in the U.S. Barclay’s of London will be helping process the payments.

The new process will be based on systems already in use in parts of Europe. Using an in-store contact-free scanner, shoppers could pay for their purchases with a swipe of their phone.

It’s been a long time since the coolest thing your cell phone could do was let you play solitaire. Now you can use your phone for music, television, checking your e-mail, and even to pay bills online.

The companies involved hope their technology will become commonplace and a rival to Visa and Mastercard’s massive payment networks.

However, there are a few hurdles that must be cleared before smartphones completely replace credit cards.

First, there’s the equipment cost. Each scanner will cost about $200 for merchants and consumers will need to pay $10-15 to have a special chip installed in their phones.

The cost is a bit prohibitive unless merchants and consumers know that they will be using it – and considering free credit card payment options are widely available. And merchants will be unlikely to install the scanners if there aren’t enough people using their smartphones to make purchases.

The Indianapolis Examiner points out, though, that the technology may not be more secure than your traditional plastic card. Just like a card can be stolen, so can the RFID data that would have to be embedded in the device. If your RFID data does get stolen, someone can clean out your accounts pretty fast.

And, of course, there is a more humble question: Could this ease of access make it that much easier to get deeply into credit card debt.

After all, the technology is being built so that eventually every phone can carry multiple accounts. Seeing the number of cards you have makes the debt you’re in more realistic. This futuristic technology could give consumers a false sense of security as to the amount of money they’re actually spending. Would this cause more people to file Chapter 7 bankruptcy?

Regardless, the new smartphone technology should be rolled out soon in Atlanta and three other U.S. cities as a trial run. If all goes well, the program will be expanded nationwide.

Monitoring your credit score is one way to keep your creditors and ensure they remove debts that have been settled from your report.

Perhaps no man has done more to get this idea to stick in the heads of consumers than commercial singer Eric Violette.

Violette was the frontman for the fictional band pitching Experian’s freecreditreport.com service. His band played advertising jingles in unusual places like Renaissance Faires and seafood restaurants.

Experian, one of the three main credit reporting agencies, has decided that since Violette has reached “iconic” status, it’s time to move in a new direction, reports the Chicago Sun-Times. Experian is also changing the name of its main service, offering a new look and a few new products as well.

However, the credit company hopes to keep memorable jingles around, and is even holding a contest to pick the next band for their commercials.

The voting is down to four finalists: Detroit’s The Victorious Secrets, Chicago’s The Poet’s Dance, New York City’s I Love Monsters, and Los Angeles’ Evolove.

Of course, if you’re worried about these bands selling out, at the very least The Victorious Secrets consider the opportunity to make more money an opportunity to “make more art, which is always a good thing,” they told Time magazine’s Detroit Blog.

This is apparently because they are too big to touch and require their own legislation. The bill did, however, include a one-page (out of 2,323 pages) acknowledgment of the Freddie and Fannie problem and a request for an investigation by the Department of the Treasury, reports Cincinnati.com.

So how does this oversight affect you?

• How it works. Fannie Mae and Freddie Mac are GSE’s, or Government Sponsored Enterprises. Fannie Mae was created in 1938, and Freddie Mac in 1970. They are financial institutions that are supposed to help free up private institutions. Freddie and Fannie buy mortgages from primary lending agencies, so that the primary lending agencies have more money, enabling them to give more loans. If banks can give more loans, the thinking goes, more people may own homes.
• What happened. These and other GSE’s were under pressure during the Clinton and Bush administrations to provide more loans to low-income people, so that more people could be homeowners. Unfortunately, the risky subprime loans caused the housing market to crash, contributing greatly to the recession that we’re currently in. Of course, up until 2008, the corporations were showing modest regulatory capital, but then were deemed insolvent by the Department of the Treasury. As it turns out, both companies are in the hole by trillions of dollars.
• What will happen. The two companies are in a combined debt of about $5.6 trillion of liabilities and have already drawn $145 million from the government to keep from going under. And as a government-backed enterprise, who owns that debt? You, the taxpayer. Which is why it matters. And the government can’t just let these financial institutions go. Without them, the housing market will take a dive from which we’ll be hard-pressed to recover.

So what can be done to fix this? So far, it’s unclear.

The Obama administration has called for a conference on August 17 to discuss ideas and has set itself a deadline of January 2011 to decide on a solution, according to the Washington Post.

The choices are pretty clear: Keep Fannie and Freddie and find a way to make them work, or move back to the privatization of loans and either get rid of the mortgage giants or heavily regulate them.

Interestingly, the Obama administration seems to be leaning towards the second option, giving the impression that home mortgage is not an American right, but rather just part of the American dream. This a view traditionally held by more conservative members of Congress, but has been expressed by senior officials who are leaning towards policy goals that promote renting rather than home ownership.

The bottom line? A seventy-year-old government financing strategy could be turned on its head within the next six months.

So if you’re looking to extend a line of credit to purchase a new home, your search may be impacted one way or the other. Unfortunately, if you’re struggling with your own home mortgage and considering filing bankruptcy there is no current planned government bail out.

Forbes.com reports that a recent survey taken by CESI Debt Solutions, Inc. found that 80 percent of married couples spend money their spouses don’t know about. Even more surprising, 18.5 percent even have secret credit cards!

While maintaining separate checking accounts and credit cards is common – and often healthy – for a relationship, too many financial secrets often lead to divorce or even chapter 7 bankruptcy.

These secret nest eggs and covert credit cards have a new name in the world of joint assets: Financial infidelity.

Most of the spending in the survey was for the usual things:

• 34.5 percent of people were buying clothing and accessories
• 24 percent spent money on food and dining
• 19.5 percent spent on personal care items
• Other purchases included gifts, alcohol, and children

Most of those are pretty everyday purchases, so why the secrets?

When spending gets out of hand, many spouses are afraid of the damage the truth may cause. One wife surveyed had $20,000 in debt she was trying to pay off without telling her husband.

What’s the problem with all of this? Aside from the strain secret spending and debt can place on a relationship, there are financial repercussions as well.

High debt in your partner’s name could affect your credit score. If you need to take out a joint loan for a home mortgage or new car, your secret credit score could result in a higher rate or a denial of the loan.

Experts say that the best way to manage these problems is to make sure that both people are involved in the finances. Don’t leave it all up to one person.

This doesn’t mean you have to keep tabs on every cup of coffee purchased, but, in general, both partners should:

• Have a rough idea of cash in savings and checking accounts.
• Know all debt obligations.
• Know all credit lines open.

You won’t be able to hid your financial infidelities forever. If you apply for a joint line of credit past problems will come out into the open. In some cases, hidden debt has been so bad it led to bankruptcy.

In the case of credit, your mother was right: Honesty is the best policy.

A new report from credit reporting agency FICO says that one in four Americans have subprime credit.

As reported on by the AP, 43 million Americans have a credit score below 600. While the number spiked some in the early parts of the recent recession, these new numbers are at historic highs.

When a credit score dips below 600 credit becomes difficult to obtain. This means that one in four Americans may face higher interest rates or downright refusal if they try to get a credit card, car loan or home mortgage.

So what’s driving this downward trend? Unemployment, for one, reports, the LA Times. A high national unemployment rate of 9.5 percent has turned many two-income houses into one-income houses.

When an income is lost, bills have to be prioritized, and sometimes some of those bills don’t get paid. Late and unpaid bills have a negative impact on your credit score.

Of course, the credit card bill affects scores as well. Although average American credit card debt is falling slightly, many people are unable to pay their bills, carrying large balances or simply having their credit card debt written off. These actions may also negatively affect one’s credit score.

Foreclosures also affect a credit score. A mortgage foreclosure can drop a credit score as much as 150 points. Even if you started with a strong credit score, that foreclosure could zap it, and it could be a very long time before you can get your once-great score back to its former glory.

Similarly, a Chapter 7 bankruptcy filing will impact credit that is already hurting, and those rates continue set new records each month.

So if your credit score is one that has dropped, what does that mean?

First, it means that a good rate on a loan is going to be pretty hard to find. NPR reports that these subprime borrowers are going to be “flat-out denied” or they will only be taken on at “punishing” interest rates. Which of course means that those people who can least afford those high interest rates are the people who will be forced to take them on.

It also means that economic recovery for the country as a whole will be slow in coming. Credit often drives spending, and if it’s hard to come by then consumer spending may stay frigid, stalling an economic jumpstart.

On the heels of the Credit Card Act, it’s another shake-up for the groups that are tied closely to the economy, especially after the financial bankruptcy filings of recent years shook so many.

The Minneapolis Star Tribune reported President Obama as saying “Because of this reform, the American people will never again be asked to foot the bill for Wall Street’s mistakes.”

However, what does it mean for average consumers?

• How it will be enforced: The bill creates a new agency in the form of the Consumer Financial Protection Bureau, which will be part of the Federal Reserve agency. This group will have unprecedented power to limit the harmful practices of lenders.
• Credit card users. According to the Dallas News, credit card and loan agreements will be in simpler language, which means no more staring at tiny print on that flimsy, see-through paper. It should be easier to understand the terms of any credit agreement. Also, the new Bureau will keep credit card companies from imposing unfair fees and prices on their customers. The bill is intended to reinforce the credit card reforms passed earlier this year.
• Use cash. The new bill could allow stores to offer discounts for customers who are willing to use cash for their purchases, because they don’t have to deal with credit card fees. Also, this legislation could give stores the green light to deny credit card use for transactions under ten dollars. So you may want to carry cash whether you’re interested in the possible discounts or not, reports NBC.
• Buying a home. The bill will restrict predatory lending. Banks will also be required to check the borrower’s income and assets, and should a borrower be rejected, they will be able to see the credit score that got them rejected. It is unclear, however, just how aggressive the home-buying restrictions will be. For instance, will it stop the enticing variable-rate mortgages that drew buyers into homes that they couldn’t afford at a low mortgage rate, only to be unable to afford the later higher mortgage rates?
• What the bill does not address. The bill does not address the automotive industry, which makes more money off of loans than off of actual car sales. The bill also does not address mortgage financing giants Freddie Mac and Fannie Mae, however. President Obama and congressional Democrats decided to deal with them in later, more specific, legislation. The Corporate Social Responsibility Newswire reports that the bill does not create new rules for predatory services such as payday lenders and debt collection companies.

President Obama is expected to sign the bill into law this week.

The Federal Reserve figures on revolving debt, such as credit cards, fell a steep 10.5 percent or about $7.32 billion.

Non-revolving debt, like educational loans or automobile loans, fell 1.4 percent or $1.82 billion.

In all, total consumer credit fell 4.5 percent. USA Today reports this drop is 4.5 times larger than what was predicted by Dow Jones or Thompson Reuters.

What do these numbers mean? Simply put, Americans are taking on less debt. However, the reasons behind this move are many.

According to Business Week, this shows that “Americans are less willing to take on debt without an improvement in the labor market.”

And while the job market has shown signs of improving, it’s still growing very slowly. A July 9th article by the Associated Press states that 650,000 people have given up on finding a job.

A drop in consumer debt could also mean that credit companies are offering less credit to borrowers. Chicago Breaking Business reports that new credit card limits are just 40 percent of what they were in 2006.

Your credit score now, on average, will get you 13 percent less credit than it would have just a few years earlier. So while there is less spending, it may be because there is less to spend. Equifax, a credit reporting company, suggests that there is simply less credit in the system.

Consumers are also shown to be paying down active cards and to be taking out home equity loans for large purchases.

Also, chapter 7 bankruptcy filings continue to rise. Chapter 7 filing discharge credit card debt, and this can impact the nationwide averages. There have also been about 780,000 bankruptcy filings in the first half of the year alone.

So if they’re not spending money with credit cards what are Americans doing with their cash? Many are simply saving it.

Personal savings as a percentage of disposable income are also up to 3.5 percent from a startlingly low 1.2 percent just two years ago.

It all sounds good for consumers: less spending, more saving. But a fall in American debt and spending such as this one has farther reaching consequences than just household finances.

Consumer spending makes up 70 percent of the nation’s economy. According to a July 10 Associated Press article, economists that used to spend time worrying about a low personal savings rate are now worried about the economy being hampered by a lack of consumer demand.

Experts interpret this and other economic indicators to mean that economic growth will actually slow to a mere 2 percent in the second half of the year. This could keep the job market cold, which may mean the economic rebound may still be a ways down the road.

Now that you have a fresh financial start, you can go about the process of rebuilding your finances, including improving your credit score.

While a Chapter 7 bankruptcy filing will appear on your credit report, the filing also likely wiped out the bad credit card debts that were bringing your score down.

With these gone your slate is effectively wiped clean. Your credit history now can be whatever you make of it.

There is life after bankruptcy, and building up that credit score is not as hard as it is made out to be. Where to start? Here are three tips to help you rebuild your credit the right way.

Consider a secured credit card. According to the Money Central website, the best way to bounce back from bankruptcy is to use credit. However, many credit card companies may be wary to extend a credit card to someone who recently filed Chapter 7. And, the credit offers you may get may have high interest rates or heavy fees. One way around

A secured credit card requires you to put some collateral up to “secure” the debt for the card. So to get this credit card you may have to place some money up front in an account.

Most secured cards have a rather low credit limit. However, the goal of this card is to show credit companies you can make regular payments. Consider using this card to make small payments that you can easily pay off in full at the end of the month. Also, before you sign up speak with your bank about your options for converting this card into a regular, unsecured credit card after a year or so of good payments by you.

Pay on time. This time around your goal is to pay the balance of the card off every single month. Achieving this goal also means watching what you spend that month. Use your card for small purchases you’re sure you can pay off at the end of the month. Be aware of when your bill is due and send it in a little early. The Post Office is not going to apologize to you if the mail is running a little late that week. Another option: See if you can switch to automatic bill pay. That way the bill gets paid on time regardless.

Start saving. You need money that you don’t touch in case something important comes up. Many people who file for bankruptcy do so because of job loss or high medical bills, not because they just forgot to make payments on their credit cards. This is why you’re often told to save up at least 3 months worth of expected expenses like rent and food. Does three months sound daunting? The Money Management website suggests to start by aiming to save two weeks’ worth of pay in your savings account. Baby steps are key.

There are your three tips for your credit renaissance. Happy life after bankruptcy!

But after charging it over and over, what do you do with the credit card debt? Not to worry. You too can lower your credit card debt, and here are some straightforward tips to help you get started.

1. Stop using your cards. Okay, for most of us that is a bit more difficult than it sounds. People don’t carry much cash anymore. While that might be good for stopping a mugging, it’s not good for your credit account. Many people tend to use credit for everyday expenses and cash for emergencies. Turn that around! From now on, credit cards are for emergency expenses only. Everyday expenses get paid in cash.

2. Pay more than the minimum! If you’re just paying the bare minimum required each billing cycle, chances are you’re not touching more than 1 percent of the principle balance, and all that you’re paying is the interest you accrued that month.

If you don’t touch the principle balance, you’re not going to get rid of the debt. Want to get rid of that principle balance even faster? As your minimum payment goes down, don’t let the check you send decrease! Keep paying that higher amount!

3. Line ‘em up, and knock ‘em down. The average American has four credit cards, but it’s a pretty good bet that the average American can’t pay more than the minimum balance on all of them.

Line your cards up highest to lowest by interest rate or by balance carried. Pay more than the minimum balance required on the highest card, and pay just the minimum on the others. After you knock out the first card, move on to the second, and so on.

Like before, keep paying the same amount as you go along. The great thing about paying off cards like this is that it creates a snowball effect. Once you’ve paid off the first card, you can put a little extra into paying off the second card, until all those cards are at a zero balance.

4. Consider consolidating. If you have one card that has a very high interest rate, and one card that has a very low interest rate, consider moving some of the debt from the higher-rate card to the lower-rate card. This is of course, provided you haven’t reached your credit limit on the lower-rate card. You may have even received an offer in the mail to transfer your debt to a lower rate card. Beware: There can be fees and string attached to these transfers, so be sure you have all the facts or you could end up adding on to your debt.

5. File Chapter 7 bankruptcy. The problem with paying down your credit card bills is that you’ll need to regularly have enough money to make these payments. If you just don’t have the income to do this, then Chapter 7 bankruptcy may be a good option. It is designed to quickly clear your credit card debt, so you can have a fresh financial start.

Remember, these tips will work differently for every person, and there are probably more ways than just this out here. The trick is to make your debt more manageable for you, and to work towards a goal.

It may have gone up without your notice, or maybe it was high to begin with. Have you considered trying to renegotiate that high interest rate?

According to a recent study done by a BankRate, 57 percent of people who just called to ask their credit card companies for a lower interest rate received a rate seven to ten points lower than their current rate. You can do the same if you have the right tools.

Here are five over-the-phone strategies to lower your credit card interest rate.

1. Call your lender and just ask. Tell the service representative that you’ve noticed your interest rates are higher than they used to be or too high for you to keep up with payments. If they say they can’t, you have a couple of tricks up your sleeve.

If the service representative tells you they “don’t have the authority to make that decision,” ask for a supervisor or someone who can make the decision to lower your interest rates.

2. Tell them you got a better offer. Still can’t get anywhere? Mention that you received a better offer from a competing card company and you’re thinking of making a switch. If you’re unsure how to go about it, here’s a sample script you can use.

“Hi, my name is [Your Name]. I am a good customer, but I have received several offers in the mail from other credit card companies with lower APRs. I want a lower rate on my card, or I will cancel my card and switch companies.”

The credit card industry is one of fierce competition, and the last thing your service provider wants to hear is that you’re going to move your business.

3. Tell the company you’ll cancel your card. But if your company is being stubborn, you can play hardball. Tell the company that you’ll just cancel your card and not use it anymore, because you know they’ll just send you a new offer with a lower interest rate in a month anyway. Either way, you’re not going to pay the extra interest.

4. Say you’re considering Chapter 7 bankruptcy. Tell the service representative that you’re on the verge of filing Chapter 7 bankruptcy. Credit card debt is completely erased when you file Chapter 7. Credit card companies dont’ want to lose this money, and may make you a better offer if they think they can keep you as a customer.

5. Call back. If your particular service rep doesn’t seem willing to talk, simply hang up and call back later. The next time you call you’ll get a different agent who may be more willing to work with you. Isn’t it worth spending a little extra time on the phone in order to not pay your credit card company what could end up being hundreds of dollars in interest?

The bottom line is that it never hurts to ask. The worst your company can do is tell you no, in which case you didn’t really lose much anyway, did you?

Often, these graduates find themselves in charge – pun sheepishly intended – of their first credit card. To help guide first time credit card users, Forbes magazine recently offered some helpful advice:

Don’t tuck it away: While it’s important to limit your spending, a first time user must also build a good credit history. The only way to develop credit history is to use your card, at least on occasion. No credit history is the same as bad credit history, at least in the eyes of future lenders.

Give debit some credit: If you are prone to spend more than you can afford, try using a debit card for most purchases. Debit cards deduct money from your checking account as you spend, which prevents you from spending money you don’t have. Just be sure you keep a close eye on your balance.

Honor the 30 percent rule: Try to use no more than 30 percent of your monthly credit card limit. If you frequently spend more than 30 percent of your monthly limit, credit card companies will consider you a risk for default. When this occurs, your limit may be reduced, hindering your ability to make large emergency transactions.

Check your account regularly: Most cards allow you to quickly check your account online. Make this part of your daily routine. Frequent glances at your recent activity ensure you know exactly how much you’re spending, and allow you to catch mistakes. Caution: To avoid prying Internet eyes, don’t log onto your card’s web site through a public wireless network.

Keep your information up-to-date: If you had the same card when you were a penniless student, remember to notify your card issuer if you get a new job. This small change could get you a higher credit card limit or maybe even a better a monthly interest rate. Just remember that a higher limit offers a financial cushion, not a license to spend at will.

Beware of marketing gimmicks: Most card issuers now promise a wide variety of enticing perks, like rewards points and free airline miles. While some of these benefits are legitimate, read the fine print on your card issuer’s web site to determine whether you can reasonably accrue enough points to make your allegiance to the card worthwhile. Also, these extra perks sometimes come with extra costs that may include higher interest rates or annual fees.

Most Importantly: Pay everything you owe each month. Everything. According to government statistics cited in Forbes, nearly 60 percent of Americans owe a debt to their credit card issuers. By simply paying off your entire bill each month, you will be in better credit shape than millions of Americans.

Not paying off your balance could cause you to pay for your purchases several times over. In fact, carrying a balance is often the first step down a slippery slope that has led many to out of control debt and Chapter 7 bankruptcy.

Most people freeze upon hearing that question. On one hand, the average person’s wallet is full of different kinds of cards, and the prospect of adding more weight – and more debt – is a daunting one.

On the other hand, the thrill and prestige of a great deal and money saved calls to each and every one of us. After all, if you’re saving all that money isn’t opening the card worth it?

It’s not always that simple. Here are four things to think about before saying yes to that new store credit card:

1. Do you shop there often? The lure of these store credit cards is often not only in the immediate savings, but in the future rewards. Many stores send “exclusive offers” and “special savings” to their cardholders. Are you going to be able to take enough advantage of these savings that it will save you money long term? Some stores don’t even let shoppers begin to collect rewards until they’ve spent a certain amount of money.

2. Can you pay it off immediately every month? Many of these store credit cards carry a very high interest rate – some of them well over 20 percent. If you carry a balance on one of these store cards the extra cash you’ll pay to cover interest rates may quickly outweigh any discounts or reward points.

In some cases, the store will let you use the card and then pay it off immediately at the register, saving you money without taking the risk of high interest rates. This is an option you should ask about before consenting to the account. If you know that you won’t be able to pay the card off every month, don’t open the account!

3. How will this card affect your credit? If you’re working to rebuild your credit you may be able to get a store-sponsored credit card before one offered by a bank. In fact, having a store card may help you build back up your credit.

However, the debts you carry on these cards are treated just the same as any other type of credit card debt.

If you don’t pay your account could be turned over to collection agencies, and this could damage your credit score and cause a host of other problems. In some cases, people have racked up so many charges on several store account that they eventually file Chapter 7 bankruptcy to clear their debts.

4. Why is the clerk offering you this card? Stores don’t give out cards and discounts simply because they’re feeling charitable. Cashiers are often required to ask every customer to open a store credit card, and may even need to fill a quota of cards opened per day. In some cases, they receive extra compensation for signing up new card users.

Also, keep in mind that the store is trying to make money, no matter how much they “care about your convenience.” They’re hoping you’ll open the card and fail to pay the balance, so that even though they lose a little money on your immediate purchase, they’ll save money in the long run through those high interest rates and regular return business.

The Bottom Line on Store Credit Cards: The key here is to think in the long term. How much will this card actually save you? Be sure to include interest rates on unpaid balances, the effect on your credit and whether this card will push you to make purchases when you otherwise wouldn’t shop.

In some cases, particularly for an expensive, one-time purchase, it may make sense to open a card and cash-in the discount. Many times, though, a store credit card is just another potential source of debt.

Keep Credit Private When Shopping Online

Online venues for selling used stuff can be a great way to make money off of what you no longer want or need, but they come with a certain level of risk, as this article points out. To keep yourself and your money safe, consider the following tips:

• Don’t post too much information. A contact phone number or email is usually sufficient to get transactions taken care of – letting strangers know where you live is always risky.
• Be careful about meeting: Public venues with third parties present are generally preferable for anonymous meet-ups, but if you must be at someone’s house, be sure to take someone with you.
• Be careful with photos: Make sure you show only the item for sale, not your house (with address) or any other telling aspects of your life.

Avoid Travel-Based Scams

With vacation season approaching, travel-related scams are on the rise. When looking for getaways, watch out for tricks like these:

• Fake offers: Some sites advertise low-cost rentals that don’t exist – naturally, you have to pay in advance.
• Upfront fees: Be wary if a deal includes lots of upfront fees – it could very well be a scam.
• Too-good-to-be-true prices: Before committing to a super-low online offer (that is, giving up your credit card information), try to find the deal on another site. If it’s legitimate, you should be able to uncover similar prices from other vendors.

Eliminate Overdraft Fees

Abusive overdraft loans have become very common and cost Americans billions of dollars each year, even driving some to Chapter 7 bankruptcy. But, by being conscious of what overdraft fees are, you can improve your chances of avoiding them. These tips may be a good starting point:

• Opt out of your bank’s overdraft protection service. New rules that take effect later this summer should make this easier for you than it has been.
• Keep track of your spending, whether it’s in a check register, by visiting your account online every day or some other method. It’s a good idea to always know how much money you have before swiping your card.
• Try an alternative to overdraft protection, like linking your checking account to a savings account or a line of credit.