I’ve been all over the map when it comes to using credit cards. I started out badly, going in debt and then struggling to get out. Once I finally got out of credit card debt, I vowed not to touch them because I didn’t trust myself. (After all, I’d already proven that I couldn’t handle the cards.)

But then I had an issue with my debit card that convinced me to give a single rewards card a try.

I set up two rules for myself: no spending any money using it that I didn’t already have sitting there in the bank, and no carrying a balance, EVER. No matter what. (Which of course was made easier by the first rule — no reason to carry a balance when I’ve already got the money in my hot little hands.)

And you know what? Sticking to my rules worked, and I was able to start earning cash back. Essentially getting a small discount on things I would have bought anyway was a nice little bonus. I stuck with just the one up until this past year, when I was tempted by a huge airline miles offer. I’ve since earned enough miles for 2 round-trip tickets anywhere in the world with miles leftover, or three tickets anywhere in certain areas.

As it turns out, there are a lot of credit cards on the market that offer various rewards. I had no idea there were so many options. (For example, there are tonnes of credit cards UK deals, and there are probably just as many offers in the U.S.)

I might be hooked on the idea of rewards cards, but I’m still going to keep my rules first and foremost — because there’s no way I’m ever going back into debt.

What about you? Do you get any bonuses from your cards? Or do you stick to the tried-and-true method of cash?

The following is a guest post.

For millions of Americans, a credit card is a temptation to debt. For millions more, a credit card isn’t accessible due to poor credit.

This is happening disproportionately to younger, working adults with college degrees. The reason is based in burdensome debt from education loans, coupled with heavy credit card debt since college. They really don’t have a lot of options – credit card companies won’t have them as customers.

Meanwhile, many people who still have credit cards wish they didn’t. Many-thousand dollar balances incur $300, $400, $500 or more of interest charges every month. The best they can do is pay on just the interest, never reducing the principle balance.

Which begs a question: Is it possible to live without a credit card – either by choice or default?

Sure. You can use bank debit cards (plastic backed by cash in the account) for many things, including the purchase of airline tickets. Of course it forces you to live within your means, your current income. Which can be a very good thing.

But what about emergencies?

If you worry about how to pay an emergency, such as a $1000 car repair, without a credit card, how else might you do it?

This may strike you as one an unlikely suggestion: Get a payday cash advance.

Cash advances can be worth up to $1500, depending on your rate of pay and where you live. But they are also best paid off within 30 days – from your next paycheck – such that you won’t carry that balance very long. It buys you time, allows you the dignity of handling that emergency expense, but doesn’t lull you into some false sense of financial well-being. You still need to cover those costs over one, two or three paychecks.

This is more commonly done than you might know. Cash advances are now online, so there’s no need to go to a cash advance loan store – and millions of working people are getting them. You spend about ten minutes on the cash advance lender website, then the money is deposited electronically overnight. You get your cash by tomorrow morning (business days).

There indeed are ways to live without credit cards. You just have to decide if you’re committed to doing it with a backup plan.

This article comes from Steve Sildon, guest contributor and Managing Editor for Credit Card Assist, where he provides tips and advice about a variety of personal finance and credit-related issues including credit cards, rewards programs and debt consolidation.

Credit card fees have garnered a lot of negative attention in recent years and rightfully so. These fees are treacherous for most consumers and have only served to accelerate the financial demise for so many others struggling with financial uncertainty right now. But there are some misconceptions about how these fees are levied by credit card issuers and there’s a wide variety of fees that go unnoticed that many people are totally unaware of. It’s important to get a comprehensive look at all of the different types of credit card fees that exist, but there are also some techniques and practices that you can utilize to minimize or offset these fees completely.

The following are a few tips on some of the unknown facts about credit card fees and, should you encounter them, how to get around paying them entirely:

1. Fees and Rates Are Negotiable: The bottom line is that all of the interest rates and fees that are levied against you as an account holder are negotiable. You can sharply reduce or in some cases even eliminate the various fees that they assess. Consumers first have to understand that the credit card business is extremely competitive by nature. Even today with the faltering economy, card issuers are still scrambling to maintain their portfolios and competing aggressively to keep their most profitable customers. Asking them to lower your ongoing interest rate is the first place to start. While the structure of rates and fees can appear complex to most of us, card issuers know exactly how profitable each and every one of their customer’s is. They earn income from the interest that they charge their customers for carrying an ongoing card balance in addition to the various late fees that they levy as well. Start by asking them to reduce the ongoing interest rate on your account. Then, should they arise, ask for any fees appearing on your account to be taken off. But the key is, you have to ask.
2. Making Lots of Money from Your Transactions: Card issuers earn a substantial portion of their revenue from the transaction fees that they charge merchants for the purchases that you make with your card. Whenever a credit card transaction is made, anywhere from 1-4% of the net purchase price is paid by the merchant to Visa, Mastercard, Discover or American Express as a “transaction fee” for utilizing the card issuer’s brand specific network. You can use this knowledge to your advantage, especially if you are what the industry refers to as a ‘revolver’. A ‘revolver’ is a customer that typically uses their card frequently and carries a balance that incurs finance charges (which you should try to avoid like the plague). ‘Revolvers’ are extremely profitable customers for any credit card issuer. If you are a long term customer and a ‘revolver’ don’t be afraid to ask them to reduce your ongoing interest rate or ask them to eliminate a late fee, especially if it’s your first one or if it happens very infrequently. If the card issuer charges you an annual fee, ask them to eliminate that prior to the next billing cycle. The card issuers make enough money from your transaction fees that they can still waive some of these fees and still maintain profitability on your account.

3. Fees that You Pay are Tracked and Optimized: Card issuers typically keep a detailed record and a running total of how many fees & finance charges they made from your account. It’s not hard to figure out if you are a profitable customer for your card issuer or bank. Simply add up all of the fees and finance charges that you’ve paid over the entirely of your history with the company. Typically, it will cost a card issuer $100 - $150 to maintain each account. If all of the finance charges and fees that you’ve incurred over the life of the account add up to more than their cost to maintain the account, you are a profitable customer for them. If not, you are considered a “deadbeat” or an unprofitable customer. The reality is that most people do incur fees and finance charges well in excess of the cost to maintain the accounts for the card issuers. Should a fee or charge arise on your account, the next time you speak with a representative at your card issuer, you might say something like this: “If you just take a look at my account history, you’ll see that I am a profitable customer for you, with the interest charges and fees that I’ve paid in the past. That being said, would you be willing to waive this late/over limit fee for me?”

4. Fees You Don’t Know About: Late-payment fees are not the only fees to watch out for. There are a number of these fees that many people are unaware of including:

1. Account Closure Fee – A fee to close my account? Sad, but it’s true; some card issuers will levy a small fee to just to close out the account.
2. Inactivity Fees – Some card issuers will levy a so-called ‘inactivity’ fee for failing to use a card within a six-month or year long period.
3. Balance Inactivity Fee – A fee that is charged for failing to carry a balance on the card. As unbelievable as it sounds, but they do exist.
4. Over-Limit Fees — If you accidentally charge more than your pre-set credit limit, the card issuer will not deny the transaction but will instead levy an ‘over-limit’ fee that’s typically in the $29 - $39 range.
5. Cash Advance Fees – Cash advance fees are typically 3% of the cash advance amount. There are no ‘grace periods’ on cash advances so the interest starts accruing from the day of the advance and the interest rate for cash advances is often several points higher than the normal purchase interest rate.

Before you apply for any card, request a list in writing from the card issuer of all fees the company charges. You can find a list of all related fees within the terms and conditions (in the super small print) of your credit card application.

Just be sure to know the facts about credit card fees, and above all, don’t be afraid to ask.

Don’t Avoid Your Credit Crisis

It can truly be one of the lowliest and loneliest feelings, hearing your home phone ringing off the hook and knowing another bill collector is on the other end of the phone – demanding money you know you do not have.

Judgment of Others

Not so long ago, people who couldn’t pay their bills felt a certain stigma was placed upon them by people who knew of their struggles. They were looked down upon, regardless of the real reasons behind their inability to pay bills. But now, in such a mixed up economy, more and more people have to confront the same scenario as those whom they once criticized. More individuals are struggling to pay daily living expenses and their bills each month, often with nothing left over.

Falling behind in payments and finding it more difficult to make payments in full, or on time, will always result in serious financial troubles. The situation can spin out of control very quickly and lead to feeling of embarrassment and being overwhelmed. Eventually many will avoid the subject all together, believing since they have no money, there is no point in talking to the bill collectors who call relentlessly.

Be Proactive With Financials

Unfortunately, not all bill collectors are friendly, helpful, or even civil; but the reality is that your debt will not go away unless you deal with it straight on. If at all possible, start dealing with it before it becomes and issues. If you know you are going to have difficulty meeting monthly financial obligations, such as credit card or mortgage payments, get on the phone with your lender and figure out what can be done before the situation is out of control.

Procrastination and debt do not mix and it is never too late to gain control of your financial situation. While it may be a difficult and emotional roller coaster ride, consider for a moment what your life would be like if you continued to ignore your financial situations and obligations.

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Tisha Kulak is a writer for Creditorweb.com, where she writes about credit card offers, finances, credit cards, and responsible credit card use.