(Source:myFICO.com)

According to a recent survey conducted by myFICO.com, almost half of respondents charge an average of $100-$500 more than usual on their credit cards during the holidays, which for some takes up to six months or more to pay off! Nearly 40 percent of these respondents also said that credit card debt was their biggest financial worry going into 2011, so learning to manage already fragile credit, make wise shopping decisions, and be aware of debt will be the key to enjoying a safe and happy holiday season.

Trends in credit card usage:

Maxin’ out: During the holidays, five percent of survey respondents say they spend 75 percent, or more, of their total credit limits.
Charge it!: Nearly 35 percent charge the majority of or ALL of their holiday purchases to their credit cards.
Cash or Credit?: Only 15 percent said they use cash to pay for holiday shopping — while an additional 35 percent stick to using their debit card, only spending what they  have in their account at the time of purchase.

Debt:

In 2009, nearly 40 percent of respondents said that credit card debt was their biggest financial worry going into 2010. This year, the same number said it continues to be their main concern for 2011. As many Americans still face financial challenges, protecting already fragile credit, making wise shopping decisions, and being aware of debt will be the key to enjoying a safe and happy holiday season.
Bah-hum-budget: More than half confessed they do nothing to prepare for the added bills during the holiday season.

Retail credit cards:

0% off now can mean points taken off your credit score later: Although most people do not apply for in-store credit cards, almost 10 percent are lured into obtaining new retail cards with upfront discounts.
Passing on new credit this holiday season?: 91 percent of respondents will NEVER open a new retail credit card during the holidays. Reasons include: You don’t want to ruin your credit, you don’t need more credit cards and/or you don’t shop all that often.

Economic impact:

Tightening the holiday belt: 75 percent admit they will be changing holiday traditions this year due to the economy.

As many Americans are facing hard times financially, being “credit smart” this holiday season will be more important than ever. FICO’s Holiday Credit Guru, Shon Dellinger, has several tips consumers should keep in mind this holiday season, including:

• Paying with plastic: Be wary of hidden pitfalls that could damage your credit this holiday season. Before you open a new line of credit at your favorite retail store, remember that besides having sky high interest rates, opening new lines of credit can hurt your credit score, so make sure the card meets your overall needs and not just your desire for quick savings.
• Don’t shop till you drop into debt: Everyone wants to get their family and friends the best presents this holiday, but you don’t have to compromise your financial health to do it. Just last year, 28 percent of consumers surveyed told us they had recently had at least one of their credit limits lowered.  Reducing your available credit can lead to higher “credit utilization” and lower FICO credit scores.
• New Year, new policies: In response to changes brought about by the CARD Act that went into effect earlier this year, many credit card issuers have added annual fees, lowered credit limits, and raised interest rates on their cards.  Be aware that many lenders have tightened the amount of credit they are making available since last season and that not all cards have the generous rewards (miles, points, etc.) programs they once had.
• Get smart about your credit: Utilize the resources available to keep track of your credit reports and scores: go to www.myfico.com or the FICO Forums, where thousands of people have weighed in on every imaginable credit question. You can also download the free iPhone app, answer a short series of questions and get your estimated FICO score range.

It's been a long time since I looked at a credit card offer (I simply don't need more than 1-2 cards–nobody does, really), but this site crossed my desk and I thought I'd share it with you.

I mean, if you're looking for a credit card, you may as well get the best one there is.

Best Credit Card Offers

by Jack Guttentag

Yes, the mortgage market is more rigged against borrowers than ever before. If only PMI had been required on all buyers between 2001 and 2007…what if?

In my last column, I indicated that most mortgage borrowers who need private mortgage insurance are not aware that they have options in the kind of premium plan they select. Almost all are directed into monthly premium plans. Yet for many borrowers, the total cost over the period the borrowers will have the mortgage will be higher on a monthly premium plan than on a single financed-premium plan. In every case, furthermore, the increase in payment will be larger on a monthly premium plan.

A Market Rigged Against Borrowers: Why aren’t borrowers offered the option?

More on Mortgage Market Rigging

mortgage market is rigged against borrowers, private mortgage insurance, mortgage meltdown