The rise of fuel cost is not only hurting consumers at the pump but also service station owners.

Many people believe the stations are raking in tons of cash but rarely consider the fees associated with the cost when taking credit cards to pay for the fuel.

It is estimated that a gas retailer works on about a 10 cent margin. When a gallon of gas is charged the cost of “fees” per gallon can run 8 cents or more leaving a very small margin of ONLY 2 CENTS per gallon for the station owner.

Look at the numbers….

A station owner buys gas from the distributor for $3.97 a gallon. In turn he sells it for $4.05. When someone pays with a credit card the credit card fees can be up to 13 cents a gallon… 5 cents over his potential profit.

Some stations without a repair business would be closing up shop.

Higher gas prices mean higher fees since most people don’t carry around a $100 in their pocket for gas.

How desperate is it getting?

The National Association of Convenience Stores claims that “Convenience stores paid $7.6 billion in credit card fees last year, while making $3.4 billion profits.”

It’s not only the gas companies making money… every time you use a credit card the company is making a tidy profit too!

Credit card delinquency rates have reached record highs throughout America in the past few years. There are some factors that have helped contribute to this, such as the weakening economy, higher gas prices and other factors, but the issue is largely one of continued consumer misuse and misunderstanding of the fees that come with credit cards.

A deeper look inside the good, the bad and the ugly of credit cards may help you improve the way in which you use your own card, or help make the decision of whether you should go after a credit card in the first place.

Card Benefits

The benefits of credit cards are many. Obviously the main benefit is having a line of credit that allows you to purchase things in advance of when you would be able to otherwise.

Other benefits include the rewards programs that many cards offer, which can prove to be quite substantial depending on your usage of the card, and the fact that you can avoid carrying around large sums of money. They also some peace of mind knowing that you have an extra source of income should something unexpected come up.

The truth though is that credit cards are ultimately less than they’re cracked up to be. The simple fact is that through monthly or annual fees and interest payments on purchases, it eventually gets to the point where you’re borrowing your own money.

In the rush to get something a few months ahead of when you could’ve otherwise got it, you set yourself on a course for a lifetime of dependency and fees that will drain thousands of dollars from you by the time without fail. In the wake of the delinquency statistics, many people have failed to consider the fact that the credit cards themselves are the problem, and not so much the people using them.

Card Fees & Interest Rates

When fees and interest rates make consumer money all but disappear into thin air, we’re all the worse for it. The credit card companies get fat while everyone else suffers. Retail outlets that once thought credit cards were the greatest thing since sliced bread are now reeling as that credit debt has caught up with all those consumers and cut retail spending dramatically.

Credit cards are undoubtedly one of the main reasons for the weakening economy, and yet all people do to compensate for this is by taking on more and more cards and burying themselves deeper and deeper. Incredibly, as much as 15% of the population owns more than 10 credit cards. If this isn’t utter insanity, nothing is, plain and simple.

Just some of the many factors that contribute to the overall credit card debacle are yearly fees, outrageous late fees that can raise the standard rates by 2 to 3 times their original amount, sky high interest rates no matter the amount of money being borrowed, over-limit fees, and penalty rates. All leading to a lower credit score.

The one element that consumers are conned into believing is a benefit are the low minimum payments required. If you think the credit card companies are doing you a favor, think again. They want you to only make the minimum payment, this means you’re stuck paying them more money over a longer period of time.

This trend is so alarming that federal banking regulators have recommended the minimum payment required be raised to at least 1% of the balance in an effort to try and save consumers from themselves and the wily credit card companies.

So why get a credit card? Good question, one that not enough people have been asking themselves over the past decade. Take the time to ask yourself this before you jump into the fray that has left our country’s households in an average of $8,000 in debt.

When you think about the fact that more and more people are getting into more and more debt all over the world, you can see why this is a problem that you need to be concerned about. Not only in the United States, household debt has topped the 2 trillion dollar mark, and this is actually without mortgage debt at all.

Whether you are in a situation where you need to worry about debt right away, or you are afraid you might be, you'll find that debt consolidation is something that you are considering, but before you go ahead, you need to keep a few things in mind.

What Should Happen?

In a perfect world, debt consolidation means that all of your debt is moved to a single source, whether it is a credit card payment, a car payment a loan or a mortgage. You'll find there are a number of different places to get this done, whether at your bank or online and you'll find that the results promised, which include a lower interest payment, a lower monthly debt and overall, more money left over at the end of the month, is quite attractive.

This essentially allows you to save more money and to make your debts a great deal less urgent than they might have been initially.

What Really Happens?

In many cases, debt consolidation happens because people are not managing their money correctly and is considered a last case resort. Many people who consolidate their debts find that the initial freedom allows them to be even more careless and this can lead to a spending disaster. In these cases, getting a debt consolidated just leads to being even more deeply in debt.

For many people, the zero balances on their credit card are just too tempting and they might find that their credit has even been increased to a point where they will be even more tempted. For someone whose debt might have been caused by careless spending in the first space, this can lead to a situation that is even more difficult.

What Needs to Change?

When dealing with debt consolidation, you'll find that you need to not only chance your finances, but also your spending habits. Make sure that if you have to consolidate your debts that you will do it in such a way as to put yourself ahead, and make sure that you will have the will power that is necessary to break any bad habits that you have picked up

Many people start this process by getting rid of their credit cards, and by putting a moratorium up on your loans. This can make sure that you don't get more loans that will be burden on you and take a serious look at your finances. Make sure that you understand how you racked up the debt in the first place and make sure that you know how to stop before you go ahead and consolidate!

Conclusion

Remember that to make sure that debt consolidation works for you that you will need to change you spending habits which will improve your credit score. Over time, your debt should go down, not up, and you'll find that reminding yourself of this can stave off further disaster.

Ideally, your debts should not eat up more than about 36% of your income. This is recommended, possibly even required if you want to consolidate your debt, so make sure that you plant this out an stick without it. With this ratio, you'll find that you don't need to to live paycheck to paycheck .

Remember that debt consolidation is not a magical solution that will get rid of your debt; it is a tool that will help you get debt under control!

Recovering from identity theft is one question lurking in the back of many consumers minds as the growing awareness and threat becomes more common place. The true is not recovery but prevention whether you have been a victim or not. Doing everything possible to keep yourself from being another statistic should be your primarily concern.

This is not to say you should curl up on the couch and never venture out into the world. True – these personality thefts seldom get caught or face the penalty of the damage inflicted.

Most of ID theft begins its journey online, where personal data is easily snatched while be passed from one site to another, or complete personal computer systems can find themselves compromised by a hacker installing a rogue program. They come with different labels – Trojan horses and key-loggers to name a few.

Every computer needs not only a security program but one that is automatically updated! Any time your personal information is exposed for others to see put you and your identity at risk.

Recovering from the trauma of identity theft will take a lot of time and effort. It’s also a very real issue putting you at risk, no matter how protected and safe you think you are.

More on Identity Theft Prevention here…

Everyone comes with their own reasons and desires to reduce or eliminate credit card debt. Mortgage lenders examine loan applications of those interested in buying a house much more carefully when they carry heavy debt on credit cards. Actively working to reduce the debt prior to applying for a home mortgage can give you a better interest rate in the long run.

Even homeowners facing the additional stress of open balances and finance charges on credit cards may find the stress level drop as debt goes down and disposable income goes up with focused effort.

The best way or method to attack debt of any kind is to reduce expenses (we all have places we can cut back) and apply the difference to the unpaid balance. Pay the debt with the lowest balance owed – not the lowest interest – once the debt is paid take the money paid on that debt and apply it to the next debt. Continue until all your debts have been paid off.

Some people consolidate all their debts with a loan or go the route of applying for a credit card with a low APR to bring all of their balances on to one card and focus on paying one payment per month.

Credit cards that allow consumers to transfer the open balances on their other cards are heavy marketed products in the financial world. Before you apply for a card and transfer balances from one card to another make sure you understand what is involved and what you are paying for in fees.

If you do not pay attention and understand the cost associated with balance transfers in the end the “saving” could be a costly move. Answer these questions before applying for your card.

Introductory Interest Rate – Is there one and if so what is the interest rate?

Many cards you receive in the mail may offer a zero or low introductory rate on all balance transfers. This low APR rates can eliminate or greatly reduce the finance charges on the open balance each month. With a finance charge waived for a period of time it can make paying off the card balance much easier.

How longer will the Introductory Period last?

Most of the time these introductory periods and the low rates last for six months to one year. Some run for up to 15 months. The longer the intro period the better chance you have of paying off the balance before being hammered with a full finance charge.

What will the new APR be after the introductory period expires?

Go for the lowest APR possible. Knowing in the back of your mind the APR will increase after some many months can be a big motivation for paying off the balance ASAP. Balance transfer APR is usually different than the APR on purchases. Keep and eye on any purchases.

Does APR apply only to transferred balances only or are purchases at the same APR?

To attain more customers many credit card companies separate have different interest rates for different transaction types. For example, balance transfers carry a different rate from a purchased item on the card. Cash advances in urn have another APR. Read the fine print! You need to understand the interest rate for each type of transaction the card is used for.

Do You Meet the Qualifications for the Introductory Rate?

Never assume that the offer you receive immediately qualifies you for a zero percent interest rate. The final rate depends how the company views your credit history. The final rate could be much different than the advertised rate if your credit is not is the best shape.

What are the Fees Associated with Balance Transfers

The fine print will let you know if there are any fees associated when transferring the balances. The low rate could be “recovered” with additional fees. These fees could be a flat fee to transfer the balances or the fee could be based on a percentage of the amount transferred. There could be no fee on the initial transfer but fees for transfers that occur later on.

What is the default or standard rate and when does it come into effect?

The default interest rate is the highest rate the credit card company will charge for usually penalties. This includes late payments and over-limit charges. No these rates before you make your application.

Balance transfer cards can be a great way for consumers to reduce their credit card balances. Imagine only having to make one payment each month at a low interest rate. It sure makes paying off the pleasures in life easier.

Millions of Americans carry some small negative reporting on their credit report. There is a wide range of choices to establish, maintain and even rebuild your credit report.

Once your credit carries many negative entries the journey and learning all the insider tips for credit repair and credit management can take a long time when you go it alone.

There are many companies ready to provide a solution to the ever-increasing problem of debt and credit repair. Along the way consumers can find many one-stop sources for everything related to their credit. Obtaining more or getting out of debt.

The first thing to get on the road to credit recovery is and improve your credit score is to start paying your bills on time. No matter what you may have heard the only items on your credit report that can be removed is inaccurate or outdated data. If it had been reported that your are really $7,200 past due with your local department store, and the information is correct, that information will stay on your credit report for at least seven years.

Repairing your credit is not a 5 minute exercise or a "quick fix" the process can drag on for months and even years before you'll be able to see the benefits of a great credit rating. Now identity theft throws a whole new curve at maintaining a clean credit record.

Much of the work can be do-it-yourself by reading everything you can find on credit an then take those ways to speed up the process and save some money while going through the steps. While going through the steps take some time to get familiar with the laws in place to protect your consumer rights.

The first place to start is by understanding the basic rules, guidelines and laws which effect the rating of your credit. The Fair Credit Reporting Act (FCRA) clearly states that any information negative in nature may only be included in your credit report or file for no more than a maximum of seven years. This being from the last activity date on the account. Good credit or positive items can remain on your report for 10 years.

As a consumer you have the right to request and "investigation" of any information in your credit report. Once contacted the credit bureau usually "investigates" by contacting the creditor to verify the information on file. If the information cannot be verified the item is then deleted from your file.

Inaccurate information like balance due or late payments must be corrected by the credit bureau. Finding inaccurate information and paying your bills on time are the best ways to start cleaning up your credit. Consolidating debt and paying off open accounts can also help in the long run.

Your credit history use to be something you would look at to make sure there were no errors or misreported entries. Today protecting your credit history and credit rating has come much more into focus with the threat of identity theft.

You can protect yourself with these simple tips for protecting yourself against identity theft along with picking up a copy of your credit reports for free each year.

Nothing influences your financial well being more than your credit history. Those numbers and track record speak volumes to a financial institution about your reliability as a potential future customer and even an employee.

So what is hiding in your money use report card?

The Credit Report

Your personal credit report holds information containing both your personal along with your financial status. This information is all compiled together for what is called a FICO score. The goal for those planning to borrow should be to build a high FICO score, which translates into a very positive credit rating.

When you request credit the lender usually contacts one of the three major credit reporting bureaus Equifax, Experian, or TransUnion questing a credit report of your credit history based on information collected over time and reported to them.

It may sound complicated especially when you consider all the financial transactions you’ve done over the years. Everything from buying a house, opening a credit card to buying your dining room set over time gets reported. All of that debt and payment history plays a part in your financial life. It’s for this reason you need to keep an eye on your credit score. Regularly reviewing your score, payment and credit entries you can spot and correct potential mistakes and errors.

What Your Credit Score Means in Day to Day Life

For some a below average credit score can mean the difference between a applying for a loan with an excellent interest rate and terms or one which over the term of the loan will cost your much more money. A low score makes rejection much easier for lending institutions.

Companies are now looking at credit histories before hiring new employees. Insurance companies are also using credit reports when basing insurance premiums for policy owners.

What Influences Your Credit Score

How well you pay your bills probably plays the biggest influence in your credit rating. Paying bills on time affects your score in a positive way.

Along with timely bill paying your outstanding debt also draws some consideration. The current outstanding debt of the outstanding balances owed on accounts measured against credit limits on credit cards accounts you have.

For example, despite your intentions keeping a credit card with credit limit open with a zero balance can negatively impact your credit report. Why you may ask? Creditors view that zero balance as a place for some potential spending to occur real soon.

Lenders can also have a difficult time with borrowers who have none or little credit history as this make it difficult for them to evaluate any future payment trends.

Identity Theft The New Credit Score Threat

Identity theft is the new epidemic to hit credit reporting. Be careful with your handling of personal papers, financial documents, mail, mortgage and loan papers, etc. If they come up are missing you could be a victim of identity theft. Thieves go to great lengths to steal people’s identity. They will go through garbage cans to find the right and just enough information to become the new you on paper.

If you believe your identity has been compromised consider freezing your credit report. A credit monitoring service can keep you abreast of any potential identity theft. Be prepared for a lot of changes such as changing bank accounts, credit cards, etc.

If you discover invalid action or activity on your credit report contact the bureau issuing the report and dispute each invalid entry. It may be necessary to contact local authorities to file a report. Do not be shy – take the steps to protect yourself!

Obtaining Your Free Credit Report

New laws now obligate credit bureaus to provide a copy of your credit report each year for free. Now the credit report may not cost you but to find out your FICO score will most likely involve some cost. You can get free credit report from Equifax, Experian, and TransUnion once every 12 months by simply requesting it. The Government has made the process of requesting your credit report very easy. Visit Annualcreditreport.com to get your report and start watching out for identity theft today.

With so many choices in the world of credit cards one item stays a constant - the changing APR or "Annual Percentage Rate."

Many cards holders are unaware that the APR on a credit card is not a constant. The rate changes depending on a variety of financial calculations.

For instance, cash advances usually carry the highest rate while purchases using your card is at another rate. When you signed up for you 0% APR card and transferred all of your balances my likely the card came with a grace period on the balance. Once that time ends a new APR comes into play. Confused? Learn more here in Low APR Credit Cards May Not Be Created Equal - Know Your Cards APR and How it Changes.

It is possible to stop the bleeding of credit card debt with a few tips.

The best tip helps control the debt but it could be the toughest - take your credit card and put it away. I've heard of people freezing there creditcard in a block of ice, then thawing it out when they needed it! It is their way of debt management.

Begin with a budget based not on wishes or wants but on your income and expenses - the credit card should be your last resort, after thawing the ice it's in!

Pay off what you purchase each month. If you cannot stop spending, pay more than the minimum on the balance.

Consider consolidating your credit card debt with a 0% APR balance transfer card. Focus on paying the balance off before the trail or grace period on the APR changes.

Is there equity in your home? Tap into the equity with a home equity loan and pay off the higher interest credit cards. Only borrow the minimum - do not put your home at risk!

Really facing extreme credit card debt? Do some research into credit counseling as a way out.

Learn Wise Credit Card Use

Credit cards are no free money - it must be paid back. Think hard before pulling out the card to buy anything. Ask yourself if you really need it!

Know your balance at all times and stay within your budget, this will allow you to pay it off at any time. Don't finance the future.

Collect your receipt from each purchase and compare each charge against your statement. If you find and error - report it immediately.

Pay your bills on time, you will avoid penalties and additional fees.

Plan your spending - spend cash!

Bad habits can be hard to break and using a credit card is no different. Think twice before spending.