According to some estimates, the average American household carries nearly $10,000 in credit card debt alone. If you're only able to make the minimum payments each month, you'll have a hard time keeping up with accumulating interest, and you may never make a real dent in that balance.

One of the easiest things you can do to alleviate your personal credit crisis is to simply call your credit card company and ask for a lower rate.

Sometimes you'll get lucky, spend two minutes on the phone, and the customer service agent will gladly slash your interest rates right then and there. Others play hardball and say that they can't do it. That's when you ask for a supervisor, and explain to the supervisor that if they can't reduce your rates, you'll be forced to transfer your balance to another credit card. If they want to keep your business (and they do), they'll help you out. A US PIRG study found that 56% of consumers who called their credit card company were granted lower rates within five minutes. On average, those rates dropped by 5.5 percentage points.

While you're on the phone, it can't hurt to fish for other bargains as well. True story -- when a friend called his credit card company to activate a new card, he finished the activation process and the customer service agent asked "Is there anything else I can do for you today?" He replied, "I don't know -- is there?" To his surprise and delight, she answered, "Well, I can give you a $25 credit on your account." Hey, you never know unless you ask!

It seems not a day goes by that I don't hear of some new method of identity theft or credit card fraud to guard against. And yesterday was no exception.

I spotted an article about a group of Huntington bank customers whose debit card information had been used to buy several air conditioners at Overstock.com. Huntington was quick to deny fault in the matter, deferring the blame to, "some link on the Internet." Thankfully Overstock.com quickly reimbursed the fraudulent transactions and shed some light on how the theft may have occurred.

Alan Johnson, who heads up the fraud department at Overstock, told our local paper that the numbers were likely compromised by "card tumbling," a method of fraud that seems fit for an upcoming episode of Numb3rs. Since I can't call in Charlie Eppes to explain card tumbling, I'll do my best to break it down for you.

Much in the same way that a locksmith focuses on how a lock works in order to pick it, card tumblers focus on the rules and math that govern how credit card numbers are created in order to get to your money. Once they create a credit card number, they test it for validity and if successful it's used on sites that don't verify other information such as the name or security code on the credit card.

Perhaps what is most frightening about this method of theft is that you don't have to use your card online or have the number stolen to lose out. Even though the normal methods of safeguarding your credit and debit card numbers won't protect you from this method of hacking, there is one step you can take to keep your funds safe. To avoid the realization that someone in Nigeria has emptied your entire account, you can have your debit card attached to a secondary account in which you only keep money you are going to spend in the near future.

Well why not?

What if they outlawed credit cards? Would the world end? Would it be financial Armageddon? Would we shuffle from food line to water queue in our now-tattered $250 blue jeans?

It's never gonna happen, we know. So play along with me here. I'm not talking about business credit. That's an altogether different animal (currently in hibernation). I'm talking consumer debt. This idea that we can have the McMansion AND the boat AND the trips AND the kitchen remodel because we could, up until just a bit ago, borrow all that money to do so.

And look where we are today.

Reports of consumers with good credit histories having their credit card limits lowered for no reason are becoming commonplace. Consumers are logging onto their online accounts, and finding that their limit has been lowered and they weren't told anything about it. And this problem can set you on a downward spiral quickly.

A lower limit means you're in greater danger of going over your limit, and therefore incurring penalties. Your credit score may also suffer, as one component of the score is how much of your available credit you've used. A new lower limit can mean you've used a greater percentage of your limit.

And a lower credit score can cause your other accounts to be negatively affected. Some credit card companies will make changes to your terms based upon a lower credit score or worse credit condition in general. You might get hit with a higher interest rate, another lowered limit, or a closed account. Those negative actions could then further impact your credit score, and you can see how easy it might be to get in real trouble quickly.

Politicians, economists, columnists and bloggers have offered numerous stark predictions about how the current financial crisis and government bailout will affect average Americans. But the truth is that Wall Street's crisis, which kicked off September 15 with the fall of Lehman Brothers, Merrill Lynch and AIG, is already affecting Main Street.

We list eight ways your finances are already being affected by the current financial meltdown:

Credit card limits reduced:
Even if you have a high credit score and a blemish-free payment history, your credit limit may have been cut. American Express recently cut the credit for 10% of its cardholders, but most banks have reduced credit limits for some customers since last summer. If you are making a big purchase or use your credit card for unplanned expenses, be sure to check your limit. There are big penalties for going over it.

Student loans harder to come by:
It's not just banks and mortgage lenders that are suffering. The student loan industry is in crisis. Private lenders are going under and some state agencies and large banks, including Bank of America and Wachovia, have stopped issuing student loans. Some schools are being more forgiving on payment schedules as students scramble to secure funding. Call the student aid office for help, but expect less favorable terms than prior years.

Money market mutual funds safer:
To stave off investor panic after one prominent money market fund "broke the buck," or posted a small decline in value, the government has promised it would cover any losses. Not all funds are covered in the new program, so check with your fund company if you are worried. With this added protection, money market funds are now just as safe as bank savings accounts.

More incentives to open bank accounts:
One result of the credit crisis is that banks are trying their darndest to attract more deposits. Chase is currently offering $125 (at least in New York City) to open an account with direct deposit. Citibank is beefing up its "Thank You" rewards program. Refer a friend, and Bank of America will give you both $25. Remember, low fees and high interest on savings are more important than one-time incentives when choosing a bank.

Easier to get a loan if you have good credit:
Don't forget, even in the current crisis, banks want to stay in business. So they are continuing to make loans to borrowers with with good credit records and plenty of assets. There are good deals on home equity lines of credit and businesses have found short-term loans easier to come by since the bailout talks began.

Harder to get a loan if you have weak credit:
If you have a tarnished credit history, don't expect to get a loan any time soon -- even if you're willing to pay high interest rates. Banks continue to tighten their lending standards as the credit crisis deepens. If you need to rebuild your credit score, a good way to start is by using a secured credit card (one where you have cash in a bank account to back up purchases).

More deals at stores in preparation for weak holiday spending:
With the economy slowing and family budgets tightening, retailers are anticipating a tough holiday sales season ahead. So they are layering on the deals early. Black Friday, the day after Thanksgiving when the holiday shopping season kicks off, should provide a bonanza of deals. Consumer electronics will offer particularly good buys.

Investment returns are down:
The stock market has taken it on the chin in recent weeks. But sharp sell-offs on bad news have been followed by major relief rallies a day or two later. The worst thing you can do is panic and sell at the bottom. Instead, make sure your investments are diversified and use the upswings to sell some stocks if you realize now that you've taken on more risk than you can handle.

Nobody sets out to rack up credit card debt, but once you stop paying off your balance every month it becomes easier and easier to pay less and less. Before you know it, you're paying $20 bucks over the minimum, vowing (unsuccessfully) each month to stop charging anything else to the card. All too soon, you've accumulated a couple grand in credit card debt, and while you console yourself with the fact that this is about the average for Americans who carry a balance on their cards, the sad reality is that credit card debt is a cherry on top of the debt sundae holding you back from getting on with life.

Even if you've managed to reign in charging your lifestyle, as long as you carry revolving debt on your credit card, every dollar you spend on a cash purchase instead using ti to pay down your balance prolongs your agony. I charged the haircut I got this morning, the $3.79 I spent at Taco Bell ,and every video game I own! I may as well pay off a chunk of my debt and then charge these purchases to the credit card. At least then I'd save some money on the interest charges.

Don't miss the rest of our series on 15 Ways to Ruin Your Financial Future!

When it comes down to it, it's important to remember that just because I blog on personal finance doesn't mean I make all the right decisions when it comes to crunch time. Of all of the financial decisions I have made, this lingering credit card debt is the most bothersome. In my case, the debt has added to the reasons we haven't purchased a house. For a few close friends, credit card debt has led to delayed car purchases and relationship strife.

If you haven't racked up credit card debt yet, take this warning to heart and pay off your balance every month. If you've slipped like me and accrued a balance, then there are a few steps you can take to start making a better financial future. The first thing I did was to stop buying so much stuff. I still have my vices, but I don't spend as much on them now. The next thing I did was to transfer the balance to another card with a 0% offer for a year and a cap on the balance transfer fees. The final step is to start making regular payments way above the minimum in order to knock the debt out. If you don't have the extra money, I'd suggest you start looking for a second or third job!

Debt is a major factor in the lives of most people my age. While I am on the upper end of a group known as millennials, many of us share a common bond; debt.

No matter if the debt was chalked up for higher education or for high heels; its effect on our futures cannot be denied. Since most of our parents didn't start their adult lives with this much unsecured debt, we're forging new, untraveled trails, with no idea where we may be headed. That's why a new ad campaign by the Ad Council seems all the more relevant.

This new set of Public Service Announcements, as well as a slightly corny but enormously informative game, underline an important goal for the organization; teaching millennials about credit and its effect on their lives.

It started small last month, if you consider stranding 900 people on the wrong end of the planet "small." That's when the airline Zoom, which made regular transatlantic runs to North America, zonked out unexpectedly.

The sudden death of airlines creates a ripple effect. Last week, another 2,500 English travelers were left high and dry in the Mediterranean when Seguro, a vacation packager, raised the white flag. You see, the Spanish flyer Futura suddenly folded, leaving the vacation packager that used its flights holding the bag.

The next day, Britain's third-largest vacation seller, XL, gave up the ghost, halting its self-run flights and stranding an astounding 85,000 people abroad. That's a lot of sunburned Brits pounding the counters at tropical airports. Some 10,000 of them, who booked their flights without packages, were not covered by the bond and had to pay more money to get back home. Another 200,000 people with advance reservations were also wondering where their down payments had gone.

Many of the victims of these collapses thought they were covered because they used their credit cards to buy their trips. That's just not the case.

Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.

Click here to ask Ken and Daria your question.

We have always recommended that you check your credit report annually and be on the lookout for bad marks that could drag your credit score down. If you do find negative reports, don't freak out and don't get scammed by those credit companies offering a quick fix either.

Here's the right way to remove any blemishes from your report and keep it that way for years to come.

Dear Ken and Daria,

I have several negative marks on my credit report, but I am working hard to raise my score. What can I do to remove those bad marks?

-Matthew

Did you check your annual credit report and not like what you found? Ken and Daria show you how simple steps can effectively raise your credit score on Dolans.com.

The John J. Heldrich Center for Workforce Development has recently released a report titled, "The Anxious American Worker" which addresses the state of American employees. This report not only looks into the satisfaction that workers have with their jobs and with health care, but also who the workers blame and who they believe should fix the current problems facing employees.
The director of the Heldrich Center describes the findings of the report as a decade of un-addressed concerns, and a call for help from American workers.

Perhaps the most shocking portion of the report dealt with debt and retirement. The report found that almost a third of American workers had more credit card debt than funds in their retirement accounts!

As consumers, we should stand up for our rights. If we don't, companies can easily walk all over us and cost us money. However, standing up for your rights should have its limits, especially when dealing with credit card companies.

I saw this question from a consumer who made a mistake with a payment on her credit card. She ended up being charged a $29 late fee. She paid her full balance and asked the credit card company to remove the late fee. They refused, so closed the account without paying the fee. Now she finds herself with fees upon fees for not paying the original late fee, and she has a negative mark on her credit report.

When a credit card company charges interest or fees that you feel are unfair, it never hurts to ask them to remove the charges. Plead your case politely, and sometimes you'll win. But in the cases in which you don't win, you shouldn't make the mistake of trying to play "hardball" with the credit card company.

Ever since graduation we have had a credit card through Citibank which has unfortunately carried a balance. We've been good about paying more than the minimum and making our payments on time but this last month I missed the due date by roughly 2 hours since I was out of town. While you might view me as simply irresponsible for making a late payment; I, like many people will blame the Citi and their floating due date. Over the past few years our monthly due date has shifted from as early as the 16th to as late as the 23rd depending on the billing cycle.

I guess I shouldn't have been too surprised, the same thing happened to my back in 2007 when my due date floated a full week early. I had planned to cancel the card but never got around to it and just last week I got hit with a late fee and a HUGE increase in my interest rate for missing the due date thanks to it floating 2 days early. I have corresponded with Citi before about this issue to try and get them to pick a fixed day like I have on a different credit card but they stood strong in their inability to do this by stating, "We would like to inform you that the number of days in the month can vary." While I was pleasantly surprised to find out that not all months have the same number of days the problem wasn't solved. In fact any reasonable individual should be able to see that floating due dates serve no real purpose other than extracting extra late fees from consumers.

Thankfully as soon as I found out I sent a short email to Citi asking for my late fee to be refunded, which they quickly did. The bad news is that my interest rate will still stay jacked up which spurred me to initiate a balance transfer to another card. I hope you can learn from my story; always know your due date, always ask to have a late fee waived and always be on the lookout for lower rates. Thankfully unless your credit card company is moving your due date around as much as Easter these actions are easy to do and can save you a lot of money.

The Federal Reserve gave consumer a few months to mull over this proposition: Should credit card companies be allowed to raise the rate on debt you already owe? Is it fair for them to constantly reshuffle your debt so you are always paying the highest possible interest rate and the most fees? Should banks keep secret the way to opt out of their overdraft protection plans, where they can charge a huge fee for a tiny overdraft? And can they send you an offer of one rate, then switch you to another?

Guess what? Consumers overwhelmingly hate all these current practices. They think credit card companies should be reigned in. Nearly 20,000 people wrote in on the three parts of the proposal: credit cards, overdrafts and truth in lending rules. Many call for stricter rules and use florid language like "usury."

Also guess what? Banks think the rules are a stupid idea. Bank of America is not just worried about itself, of course. BofA is concerned about the "broad impact on the economy both at the retail level and in highly complex securitization markets, slowing growth and limiting access to financing. To quote Bill Murray: "Dog and cats, living together!"

BusinessWeek's Jessica Silver-Greenberg says that it's the most significant credit card rule change in 20 years. Till now, she writes, regulators were content to simply force banks to clearly disclose their terms (which resulted in those pages of small-type that practically nobody reads). So now regulators and getting around to actually regulating. The comment period ended August 4, (though the comment form is still up).

When you travel for work, you know the drill: Get receipts for everything. When you spend cash for stuff like meals, beverages, hotels, and rental cars, your employer is likely to pick up the tab as long as you've got proof of purchase.

But what if you have to spend money on the road but can't get a receipt? It's happening more and more. The major airlines have deployed their newest fees with such haste that they are not always equipped to issue receipts for on-board purchases. Ask a flight attendant for one, and on some carriers you're more likely to receive a blank stare than appropriate documentation.

Take U.S. Airways. As of Aug. 1, the carrier began charging for drinks of any sort, including $2 for water. Passengers are not permitted to carry their own beverages through security, and buying drinks in the terminal is not always possible either because of a time crunch or because of personal dignity over gouging. If you, a business traveler, decide during Hour Three of a flight that you're thirsty, the staff will sell you a drink but they won't be able to give you a receipt.

I called U.S. Airways to ask if any of its flight attendants were equipped to furnish receipts for this newfangled charge. The answer was no. Right now, an airline rep told me, there are "plans" to give on-board staff hand-held devices for printing receipts by the first quarter of 2009, but for now, they have nothing, and those nebulous "plans" could not be elucidated for me. U.S. Airways' flight attendants also have neither the training or the equipment to write receipts by hand.

I've written about the ATM scam before, but as the scam seems to be spreading, it bears repeating. Victims of the ATM scam can find their accounts drained dry before they even know their account information has been stolen.

The scam works this way: the crook places a cap, made to look like a part of the machine, over the card slot of the ATM . This cap reads the magnetically encoded info as the card passed through and into the ATM. A pinhole camera is placed so as to record the PIN as the victim keys it in. The victim gets his cash, card and receipt, as usual. After he leaves, the crook retrieves the cap and camera. Using a mag card writer, he creates a duplicate card and, with the PIN, begins to use the card as fast as possible.

This video does a great job of showing in detail how the scam works, and how to avoid it. The number 1 tip: ALWAYS SHIELD THE KEYPAD WHEN ENTERING YOUR PIN. Follow the same advice in stores, too; you don't want to temp a crook to snatch your purse or pick your pocket by revealing your PIN to them. If you think your PIN is compromised, change it.