Living on credit is a way of life for most of us. When we want to make a purchase but don’t have the money to cover it, that little piece of plastic in our wallet can be all too tempting. Credit cards can make life so much easier – if we use them responsibly. Thoughtless, frivolous spending can lead to a mountain of debt that feels impossible to scale.

If you’ve received many offers of credit in the mail, you know how easy it is to be seduced by the easy terms and other marketing gimmicks on the envelopes. But the truth of these offers is on the inside of the letter, and often written in small print. There you will find hidden fees coupled with high interest rates and rules that can change at the creditor’s whim. Still, it’s hard to refuse a credit card when someone really wants to give you one.

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Before the world was introduced to a glorified fish tank full of egotistical housemates, George Orwell described a rather more disturbing phenomenon in his book Nineteen Eighty-Four. The now ominous term “Big Brother” was used to describe an omnipotent being that watched, analysed and controlled every aspect of Oceania.

Indeed, while the producers of the popular TV show might not have the same tyrannical motives as the Original Big Brother, the concept of a controlled environment is still very much alive today. Many people would agree that surveillance and an increased interest in the everyday activities of the population is a good thing for our national security. But, how about when credit card companies start to play the role of Big Brother?

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There has been a recent move to force credit card companies to review and rewrite some of their more controversial practices. Right now, consumers are complaining that they are at the mercy of the industry’s whims. Interest rates change frequently and, sometimes, without any good reason. The companies argue that their own circumstances – with rates of default and delinquency the highest they’ve been in years – make such practices necessary. But customers and their advocates aren’t buying it. The credit card industry takes in billions of dollars each year, critics say, and can afford to treat their customers better.

Some of the practices under review include: universal default, too-short customer notice of changes to terms and conditions, and the retroactive application of new interest rates to a customer’s entire existing balance.

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Credit cards can be your best friend or worst enemy; it all depends on how you use them. Getting the most out of your credit card is often counter-intuitive or requires you to be aware of features that aren’t regularly advertised. This list of credit card hacks will provide you with the info you need to make the most of your credit cards.

1. Price Protection is a Geeks Best Friend – Don’t you hate it when you drop $600 on an iPhone or your now obsolete HD DVD player and it drops in price by a couple hundred bucks a month or two after you buy it? Many credit cards offer a price protection program which will refund you the difference when you purchase an item with the card and you find a better price within 30-90 days.

2. Read the Terms and Conditions – They are not nearly as long as you may think and fairly easy to read. The card companies are not always forthcoming with the details in their advertising and this is where you’ll find the hidden fees and rate information.

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Credit freezes are often confused with fraud alerts, but they are really nothing similar. A fraud alert is when new creditors are alerted that you may have been the victim of fraud, and the creditor is required to take additional verification steps that prove they should be accessing your credit and opening an account for you before they can issue the credit. Fraud alerts also remove you from receiving prescreened offers for insurance and credit.

A credit freeze is something a consumer can place on his or her own credit report – depending on where in the country you live. Some states allow anyone to put a freeze on their credit; while others only allow the victims of identity theft to freeze their credit. Here are other tips that will help you understand the basics of a credit freeze:

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2008 saw some pretty good Black Friday deals. And last-minute Christmas sales. And post-Christmas sales. You get the picture. If you took advantage of too many good deals this season, you might be suffering from a holiday credit hangover. The bad news is that overspending can impact your finances for many months to come. The good news is that you can make a New Year’s Resolution to cut down on your credit card debt.

Most of us want to build up our wealth for retirement, home-buying, investing, or just to take a nice vacation that the family will enjoy. The problem is that we spend too much of our monthly income on credit card bills. Minimum monthly payments are too low to actually get us ahead. Besides, with so many interest rate hikes, those minimum monthly payments aren’t exactly small anymore.

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To the wise credit consumer, the proper use of credit cards requires constant evaluation. One can get in over their head very rapidly. Which begs the question: how much credit is too much?

When considering the use of credit as a way of financing purchases one must first examine their budget in order to determine whether or not timely payments can be made on the account. To be able to pay off the balance every month on your credit card accounts is the best policy and it will ensure that you do not get hit will extra fees and penalties for not doing so. However, most credit card holders do not operate in this manner.

A common rule of thumb is to keep credit payments from taking over 20% of your gross income. Now, that being said, the amount of credit taken out to equal payments of 20% depends on interest rates, etc.

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It seems like every sector is having problems these days, from the factory workers to the CEOs and even the national government. Business is plummeting while unemployment soars. But there’s one industry that’s weathering the recession just fine: debt collection. If you’ve gotten behind on your credit card payments and started screening your phone calls, there’s hope for you yet.

First, realize that you’re not alone. Debt collection is booming precisely because so many people have gotten behind on their payments. We’re not a culture who likes to talk about our financial difficulties with others, but chances are good that you’re not the only person at the party who cringes every time the phone rings.

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Governments lead by example, whether they want to or not. Sometimes they give us an example of what not to do. Wall Street execs are also unwitting role-models to millions of people. But mistakes can be made at any level, especially when irresponsible lending and spending are involved.

To keep your own credit in tip-top shape, pay attention to these costly lessons learned by banks, mortgage lenders, home buyers, and our national government as a whole.

Lesson #1: Credit isn’t a license to spend.

Just because you’ve got a lot of available credit doesn’t mean you should race out to spend it all. Lenders have a job to do, and that job doesn’t always have your best interests at heart – as too many home buyers have learned in recent years.

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According to Google, lots of folks are searching the Internet for 0% interest credit cards, no-interest credit cards, and interest-free credit cards. Do such cards really exist, or are these potential card holders embarking on a wild goose chase?

You can find 0% interest credit cards. However, the length of the 0% interest period varies from card to card. If you have been hunting for a card that never charges interest, you are, sadly, out of luck. Credit card companies make money from the interest you pay them. But some credit cards do offer an interest-free first year, or even longer. This is great for card holders who anticipate carrying a balance, but who will be able to pay it off before the introductory period runs out.

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