When the Credit Card Act of 2009 was introduced, the consumers hoped that this will be the end of abusive practices. But with credit card companies the way they are, it seems like clients were too optimistic. Today, consumers should only look at their latest credit card statements to know that they’ve been had, again. Bank and other card issuers have created new ways to collect millions from users. They have also expanded the fees and coverage to squeeze every penny from credit card users.

According to Joshua Frank from the Center for Responsible Lending, “Credit card issuers are going to more than ever try to find ways to make extra profits”. A lot of changes were made in the way charges were calculated. All this resulted to a burgeoning balance in the cardholder’s account. Meanwhile, other abusive practices were also put into place even before the Act was passed as a result of the recession. If there’s one ting they have in common, it’s that none are “explicitly prohibited by the Credit Card Act.”

Changes to be Aware Of:

Hidden Rate Adjustments

Cardholders with fixed-rate card need not worry. But variable rate cardholders, which majority of the market is comprised of, should be cautious. Previously, the charges were pretty straightforward. Card issuers will choose the highest prime rate in the current cycle as the starting point. Now, they have changed the terms so they can select the highest rate in a 90-day cycle. This will cost cardholders $720 million per year.

New Fees and Expanded Charges

Rate changes are not the only tricks that interests credit card companies. They also found a loophole in charging penalty fees. Some of these so-called “penalty” fees are so extreme, it looks silly. Except that you won’t be laughing when you’re the one hit with these charges. Some of the fees you need to look into carefully these days include the late fee, minimum finance charge, inactivity fee, and cash advance fee.

Many had hoped that December 2009 would restart job recovery. But if the economic data of the past year is any indication, it would seem that full recovery is a long way off. True, the banks might be more stable today than several months ago but the recession’s impact on individual life and families will take years to restore, if ever. The endless string of job losses in the last two years has left a bad taste in everyone’s mouth, especially to the people that experienced it firsthand.

Currently, the unemployment rate is hovering at 10 percent. It might improve slightly although economic experts warn that it has a high likelihood of staying uncomfortably high in the near future. More worrying though is that some analysts even suggest that the job market cannot recover from the 7.2 millions job cuts it suffered from since 2008 before the next round of economic problems.

Unemployment to Stay High, and Keep Going Up

Lakshman Achuthan from the Economic Cycle Research Institute said that “the problem is recovery doesn’t mean recovered.” This is because while growth is expected, it will be slow. It can take up to 10 years before the 7 million jobs lost in less than 2 years are recovered. In addition, it should be noted that even if employers add to their payroll, the economy needs to generate 100,000 jobs in a single month just to keep up with the population growth.

The economy should also be prepared a large pool of out-of-work individuals. Majority of these 6-million strong workforce have been laid-off during the recession. While they have been discouraged recently, there is a good chance they will enter the labor force again once the situation improves. Their reentry will increase the unemployment rate. The job recovery will not be explosive. At best, the unemployment problem will be resolved in several years.

Get the best value from your money, literally. This New Year, why don’t you shop around for the best bank, the best broker, or the best financial institution? Now is the time to change the way you save, invest, or complete everyday transactions. The amount of money you can “earn” by simply choosing the right medium to save, spend, or invest is significant.

For example, if you actively use credit cards, why don’t you choose a company that provides air miles, big discounts, or 0% interest rates? It is easy to do it. Likewise, why would you want to keep your money in an account with 1% interest earnings when you can find a bank that will give you 4-5% for it? If you’re tired of getting the short end of the stick, do something about it. The list below gives you some clue about things to keep an eye for if you want to get a good deal.

Rate Nerd uploaded a new post “Best Checking Accounts to Start 2010”. It is a very helpful post because it enables consumers to pick and choose among competitive offers in the market. Some of the checking accounts even offer up to 5.01% API for checking accounts. Check out the featured offers listed on the blog to get a feel of what your decision should be like this New Year.

Deal Maven @ Bankaholics posted an article titled “Get a Good Rate and A Free HDTV.” This offer is available from Irwin Union Bank. The amount of money you earn depends on a large part, on where you live. The Irwin Bank website will ask you to enter your zip code to know the rate for your location. The lowest rate is 1.90 API. Want a bonus? The bank also lets you get a 22-inch Sharp LCD TV. But the catch is you need to have $20,000 for investment.

Brian O’ Connell @ Main Street featured a weekly roundup on his blog on the post titled “Banking Deals of the Week: Jan 6”. He commented that while banks have a wait-and-see attitude, their interest rate deals don’t look as attractive as it could have been.

Debt is a common problem in America. Every middleclass family has one form of debt or another and a significant part of their monthly income goes into repayment. Having debt may be inevitable, maybe even beneficial at times. However, there are cases when debt becomes unmanageable. If you are knee-deep in debt, it’s time to take action.

Every little bit goes a long way. Take note that every penny you save is a penny that will help you get out of the debt trap. Below are some tips that will point you to the right direction:

Keep Track of Your Spending – this is a very sensible thing to do. But it is sometimes still amazing how many people fail in this task. Money can be gone so easily that you won’t even notice it unless you keep track on what goes out. Try to keep a cash notebook or use an online application tool like Mint.com to be aware of your spending pattern.

Make a Budget – every self-respecting financial expert will tell you to develop a budget to have any hope of controlling spending. After observing your pattern for several weeks, it is possible to develop a realistic and effective budget. Go for the balanced money formula which states that you keep 50 percent for your needs, 20 percent to saving, and the rest to lifestyle spending.

Earn Money from Your Money – if you have some leftover money from the bank, it is a good idea to invest it in high-yielding financial mediums. It enables you to create money from your savings. Some popular options today include rewards checking account, online savings account, and certain types of special deposit account.

Look for Possible Discounts – people have a tendency to keep paying what is charged to them. This is not always recommended. It is actually possible to ask for discounts, reduced rates, or freebies from the companies you deal with. For example, some banks are amiable to giving you a lower fee provided that you can give a good reason (other bank offers). Meanwhile, look at your insurance options as well. There is a lot of savings that can be derived from that.