PROPER CREDIT USE CHARGES CONSUMERS WITH DECISIONS.

Byline: Chris Sieroty Staff Writer

At first they seem like easy money. And credit cards can be a blessing if you are sometimes strapped for cash. They can also bring financial ruin if you don't know how to manage them.

But play your cards right and they can actually work for you.

``Consumers need to remember that they're in the driver's seat when it comes to credit cards,'' said Catherine Pulley, a spokeswoman with the American Bankers Association in Washington. ``If you shop around you'll find the best deal.''

Currently, there are more than 6,000 issuers of credit cards in the United States all vying for the average consumer's business, she said.

``You might want a credit card that offers frequent flier miles or will donate any cash rebate to your alma mater,'' Pulley said. ``If you shop around you'll usually find what you want.''

Americans in these unprecedented economic good times were carrying 506 million Visa, MasterCard, Discover and American Express cards last year, according to statistics from CardWeb.com, a credit card research company.

There were another 800 million debit and credit cards in circulation.

Financial analysts say the advantage of debit cards is that they let you rent a car from Avis or purchase clothes from The Gap - for example - and it deducts the money directly from your account.

``The good thing about debit cards is that you are spending what you have, and once it is gone you can't spend any more,'' said Dayana Yochim, senior producer for personal finance at The Motley Fool in Alexandria, Va.

``At The Fool we like them. A debit card is like buying with cash, and everyone should be buying with cash,'' Yochim said.

With so many credit cards in circulation, the average debt load carried by an individual card holder has steadily risen over the past 10 years.

Figures released by CardWeb.com show the average American household with at least one credit card carried a credit balance of $7,564 in 1999. In 1990, the typical American household with at least one credit card had a balance of $2,985.

According to Yochim, Americans last year charged a total of $400 billion worth of goods and services. Those consumers also paid $50 billion in interest, an amount equal to buying the inventory of 5,000 Jaguar dealerships or signing a 2,000-year endorsement deal with golfer Tiger Woods.

``That's a lot on interest Americans are paying for the privilege of buying things with borrowed money,'' she said.

Meanwhile, the credit card industry last year alone sent out more than 3 billion mail solicitations and 297 different online card offers from 59 issuers.

You don't have to sort through the pile of credit card offers online or left in your mail box. Now you can go online to search for the best deals.

Bankrate.com lists competitive card rates from across the United States.

Experts suggest choosing a credit card with a low interest rate if you carry a balance from month to month. Credit unions, for example, often offer the lowest rates.

Pulley said whatever card you select, read the fine print before signing an agreement.

``Basically a credit card is a loan,'' she said. ``It's a loan just like any other loan. Just because it's a credit card it doesn't mean you should be less responsible than you are with home or auto loans.''

For consumers who find they can't pay their credit card bills, Pulley said you shouldn't panic but you should act quickly in trying to solve the problem.

``Tell your creditors you want to pay off the debt and they'll set up a payment schedule,'' she said. ``Establish a budget and be realistic about how much money you'll have to set aside to pay off the debt.''

If that doesn't work you can always consult a credit counselor.

The nonprofit National Foundation for Credit Counseling Service has more than 1,450 offices nationwide. They can help you establish a budget, even if you're not in trouble.

If they decide you need a debt management program, they will negotiate with your creditors for lower monthly payments and lower interest rates. Consumers should be aware that the service is sponsored by the credit industry, so they have an interest in you paying your debt and not filing for bankruptcy.

The NFCC can be reached at [phone].

FYI 

To dispute inaccurate information or for a copy of a credit report, there are several agencies consumers can contact to request credit information. Below are several companies and their addresses and phone numbers:

Mail disputes to:

Equifax Information Services 

PO Box 740256

Atlanta, GA 30374-0241

Trans Union Corp.

PO Box 403

Springfield, PA 19064-0390

Experian

National Consumer Assistance Center

PO Box 949

Allen, TX 75013-0949

Or call these numbers for more information:

Equifax: [phone]

Trans Union: [phone]

Experian: (888) EXPERIAN (397-3742)

Source: ConsumerInfo.com

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Box: (1) FYI (See text)

(2) CREDIT HISTORY

Key dates in the history of the credit card