The enactment of the new credit card regulations has people griping about changes in their interest rates. Another way to look at this would be to treat a credit card as cash. Paying the minimum perpetuates debt. Using a credit card in the absence of cash (or the ability to use cash) does not mean the debt does not have to be repaid. This leads otherwise money savvy people to spend what they don’t have in order to make sure they have the necessities.

For those with no balance on their credit cards or a small balance, check out this calculator from the FTC to see how long it will take you to pay off your credit card debt. If you have little or no debt at all and enter in your credit card rate with a fictional amount: pretend you went on a spending spree. The amount of time that it would take to pay off the bill would be enough to keep you on the straight and narrow. Pass it along to friends who need assistance in their finances. It might shock them enough to see how much they pay in interest by paying the minimum.

Consumers spent an average of $811 on holiday gifts, significantly more than the $699 they initially planned to spend, according to a Consumer Reports survey expected to be released today. About 4 in 5 consumers bought gifts, and in a good sign for discretionary spending, many shoppers bought for themselves, the poll found.

While this sounds good for retailers, spending more than you intended to spend makes it difficult to stick to a budget for Christmas spending. The article continues to say that many people also used their credit cards for purchases. Spending $112 more on gifts than you anticipated can mean the difference between having money for the electric bill or a few tanks of gas. Still the results of the survey are for an average… This does not mean that everyone went over their budget or even those who went over their budget only spent $811. There still may be people who spent well over their budget but had no financial problems. If a person can afford to spend $811 or $5811 on Christmas gifts without causing problems for their budget it’s not an issue, which is where surveys such as these give the wrong impression. A person’s cost of living makes a difference in how and what they can really afford to spend. A free spender who became newly frugal or at least cut back on spending but with a higher income might see spending less than a thousand dollars a bit low for holiday gifts, especially if they have many gifts to buy.

Would you change your spending habits of the past?

Many people I know learned from their bad habits by not spending a lot of money on credit cards or not wasting their money on things they really can’t afford.

If nothing else comes out of the recession the greatest gift will be teaching people to have better money management skills and not to overspend.

I’m happy with my spending habits and my saving habits. There are some things that I think I probably should have bought (generally souvenirs) but didn’t. None of those items cost less than $100 and nothing changed my quality of life.

Saving all the time can be as detrimental as spending all the time, Waiting to spend because you aren’t sure if you are going to see something better doesn’t help you. When you are not spending money on small ticket items because you are saving for a large ticket item, then that is different.

Past spending habits and saving habits have made me the frugal person I am today. There are some things I won’t buy just because I can afford them and there are other things that I want and will save up for, which makes me appreciate the purchase more. If you know that you had to sacrifice to buy something or sacrifice to maintain it, then you might think more about the item.

Thinking before buying can leave cash in your pocket…

Yesterday’s post made me think about my own credit cards and due dates. Recently, a credit card that has had the same due date as a similar card over a decade changed for the past couple of months. The due date was switched to a later date for some reason, but now this month it is back to the regular date. I paid the bill when I paid the other, when I was thinking about it. Most of bills are due between the 10th and 15th of the month. Since it wasn’t a problem that the date was later it didn’t affect me, but now, after having a late due date, the payment date has reverted to the former date.

I wasn’t getting caught in a trap because I always check due dates, what if someone was expecting that date to remain the same? Of course there are variations in the due date because of holidays and number of days in the month, but to change the due date by ten days for two consecutive months and then change it back. Seems like a trick to me… pay attention to your due dates.

Also, when paying online, make sure that your payment is accepted and that you know your credit card company’s policy on payments. On its website, my credit card company says that your payment will be credited today if the payment is made before 5 p.m. Mountain Standard Time. Another card site says that payments must be received by noon Eastern Standard Time.

Everything that we have grown accustomed to as credit card users is changing radically because of the number of people defaulting on their bills and because of future legislation that limits fees some of the powers of the credit card companies. Know what your interest rate is, but also be aware of fluctuating due dates. Being late by one day could cost you interest and late fees.

I saw this video featuring a woman who is telling people about her problems with Bank of America. She has debt and because of the credit card law that will go into affect soon, credit card companies are making changes even to good customers. This lady is unhappy with the changes that were made to her account.

The following  reponse to the “Debtors Revolt” video provides some sage advice about paying attention to the changes in due dates and interest rates. The change in due dates can affect your leverage with the company. Even if you haven’t received a bill, check your account and see when you should pay something, otherwise you could be paying exorbitant fees.