The American Bankers Association finds that almost half of all people surveyed have signed up for (or intend to sign up for) overdraft account protection. That's a real testimony to how convincing the solicitations from the banks have been for this "service."

As previously reported, on August 15 the banks and credit unions became required to ask for permission to rip you off by allowing debit card charges in excess of your available balance.

Don't believe the hype about overdraft protection! You don't want to opt in for this so-called "protection." Protection from what? It's much better to be denied your $2 coffee purchase at the register when you have no money in your account than to get the coffee and be hit with nearly $40 in overdraft charges.

Ultimately, it's your responsibility to make sure you have money in your account. Carry a calculator and/or check register and record your purchases as you go. Just do whatever it takes to gets the job done -- as long as it's not opting in for overdraft protection!

Big banks are targeting individual consumers with business cards (aka professional cards). But if accepted, a business card strips the consumer of protections they're normally afforded under the Credit Card Accountability and Responsibility and Disclosure (CARD) Act of 2009.

The Wall Street Journal reports that Chase is among the big banks trying to pull this on people.

The application for such cards will typically have a box you can check that says something to the effect of, "Yes, I am a business professional with business expenses." Now, that could describe just about anybody who has a job! But by checking that box, you lose all protections afforded under the CARD Act. Banks are allowed to do the following to those who fall for the ploy:

• Apply any amount over the minimum payment to the lowest interest rate -- instead of the highest one -- on a card with multiple rates.


• Reduce the number of days between when the statement arrives and the bill is due


• Raise interest rates willy-nilly


• Charge massive fees


• Change the terms and conditions without notice

In related news, see the article Clark discussed about using your credit card overseas.

There's good news and bad news on the credit card front. As a result of the final phases of the credit card reform law being implemented, many of the most egregious fees have now been outlawed. But the banks are playing cute by raising minimum payments on credit card statements.

Why the sudden spike? That's a backdoor way for the six big banks that control the majority of credit cards in America to charge you high penalty fees. Under the new rules, a penalty fee is not allowed to exceed the monthly minimum payment.

Meanwhile, a recent Wall Street Journal report found that credit card interest rates are now the highest they've been in almost 10 years. This at the same time that the cost of funds to banks are the lowest they've been since the 1930s!

What's going on here? Well, the banks are essentially raising rates to recoup the profits they're now missing because the new credit card reform law banned all manner of outrageous fees.

All of this points to why Clark constantly harps about paying your credit card bill in full every month when you're still in the grace period. That way you don't get ripped off for the interest. Speaking of interest rates, the average interest rate on a credit card is just a hair under 15 percent these days.

What else can you do to protect yourself? If you have good credit, look to smaller banks or credit unions for better deal on cards. The credit union you have a car loan at may be the best place to get a credit card. Or maybe the little community bank you use for business is the best place.

Think small, not big. Forget the clowns that send you all those solicitations for cards. Almost always they're from the six biggest issuers who work overtime to charge you more any way they can.

The popularity of Woot.com -- a website that offers one deal a day -- has created a climate where more and more traditional companies are offering web-based specials.

The latest company to get in the game is MasterCard. The credit card company has launched MasterCard Marketplace, which offers what it calls "overwhelming offers" for cardholders every Monday through Friday at noon Eastern.

The problem is the deals are too scarce and too good. A recent offer of $100 off an iPod Touch sold out in mere seconds! And there were only 100 offers made available for this deep discount. One hundred offers in nation of 300 million people?! Come on, MasterCard!

The MasterCard Marketplace is actually very similar to what American Express has done for years. AmEx has long offered special daily deals from time to time to enhance the perceived value of their brand.

Meanwhile, we've gotten a lot of questions about sites like Swoopo.com that charge a fee to let you bid on hot products. For example, they may advertise that someone won an iPad at auction for an unbelievably low $19.

Clark says that Swoopo and its ilk are all dangerous for your wallet. Don't go near sites that want you to pay for bids in return for the chance to get something for ultra cheap. If you like gambling, go to Vegas. Just stay away from these auction sites.

Are you able to control what you spend? What if you could set your spending on auto-pilot and have it controlled for you?

That's the idea behind an upcoming service from MasterCard called inControl. This unique service allows you to put a pre-established spending limit on your credit card so you can never exceed your budget.

The new service, which is expected to launch in early 2011, will also offer the ability to send you real-time alerts as you go about your life spending money, much like Mint.com. So far Citibank is the first financial institution that will make inControl available to its MasterCard customers.

Clark loves the empowerment that comes along with a service like inControl. The idea is that you set up electro-shock therapy for your wallet. You can choose to review your alerts by e-mail or text. Or you can be completely surprised and have any transactions that exceed your limit shut down cold when you're at checkout. How's that for shock therapy?!

You hammer yourself right in the process of misbehaving and thereby eliminate having any spending regrets after the fact.

A new Federal Reserve study finds that poorer consumers who often pay cash or use debit card effectively subsidize the wealthier consumers who use credit cards and pay them off each month.

"On average, each cash buyer pays $151 to card users and each card buyer receives $1,482 from cash users every year, a total transfer of $1,633 from the average cash payer to the average card payer," the study notes.

In the wake of these findings, the good news is the new financial reform law will give merchants the discretion to offer cash discounts and also contractually allow them to set a $10 minimum on credit card purchases.

Both provisions should allow the free market to function, and also serve as a great marketing strategy for businesses looking to shift sales momentum away from plastic transactions that come with high processing fees.

Now, in all fairness, some critics have already attacked the Federal Reserve study because it doesn't take into account finance charges; it only focuses on "the interchange aspect of card income." But that's not the point. The point is that the new financial reform law should create an environment where people favor cash over plastic.

Currently, Clark himself uses his 2% cash back to pay for purchases both big and small and then pays it off every month. But he'd gladly opt for the cash discount instead.

In addition, he welcomes the incentive a cash discount would create for people to spend only what they have and not a penny more.

No word yet on the exact date when these new provisions will go into effect. Stay tuned for further information.

The credit score of many Americans has suffered mightily of late, according to a new report from FICO.

The FICO organization now says that more than one in four of us have credit scores that are 599 or lower. That means a virtual doubling of the number of people who are poor credit risks. The rash of recent foreclousures and bankruptcies are most certainly to blame, along with extended joblessness.

As an aside, Clark recently read that Vantage -- the main competitor to FICO that's owned by the three main credit bureaus -- reports the effect of a bankruptcy on your credit score is much larger than foreclosure or short sale.

Under the Vantage scoring model, a short sale will lower your credit score by 120-130 points. A foreclosure will drop your score by 140-150 points. A bankruptcy, however, can decimate your credit score by a whopping 365 points! So it's to your advantage to avoid bankruptcy if at all possible.

The reality is that Americans have been hit with the double whammy of very high unemployment and unprecedented levels of debt going into the Great Recession. So we undoubtedly have a recent past that will take a while to overcome. If your credit is devastated, it will be an ongoing healing process.

Here's the confusing thing, though: If you've been burned by debt, are you better off living a cash-only lifestyle going forward? Clark's historical answer has been pretty wishy-washy, by his own admission.

If you learned your lesson and can responsibly handle credit, that's great. Because you can rebuild a positive credit history, you'll benefit by getting lower insurance rates and having access to credit when you travel. But if you can't handle credit responsibly, then you must go cash only.

Credit card transactions can be a double-edged sword, depending on whether you're a consumer or a merchant.

If you have a business that you do on the go (at street fairs and the like) and want to encourage impulse buys, accepting credit cards is key. But when you're not at your brick-and-mortar location, you've got to either run the credit cards wirelessly (too costly) or with a manual machine (too archaic and error-prone).

Now thanks to new technology that works with the iPhone and Android phones, there are more options for merchants. In addition, there are even some PayPal options that could be cheaper for you as a merchant than going through the traditional credit card cartel or even through a warehouse club for transaction services.

Clark often sells T-shirts to benefit Habitat for Humanity on the road. He and his staff have done an upgrade with the company that does his merchant processing. They can now run credit card transactions through a laptop on the cheap while in the field.

For consumers, there's one glaring downside to mobile merchants taking credit cards: You might make a purchase you might not have made otherwise!

That's the hidden cost of credit card transactions. In another example, the vending machines at the studio where Clark broadcasts were recently upgraded to accept credit cards. Of course, they've had to raise prices on all items in the vending machine to cover the processing fees.

People who have good credit scores are once again seeing pre-approved credit card offers in their mailbox. Just yesterday, Clark got several different solicitations and wanted to open them on air.

• Chase sent a solicitation for a Continental Airlines OnePass card. The annual fee is $85. The interest rate ranges from 14.24 percent to 29.99 percent.

• Citibank sent a solicitation for a card with zero percent APR through Aug. 1, 2011 on new charges and balance transfers. There's no annual fee. After the zero percent offer expires, the interest rate ranges from 12.99 percent to 29.99 percent.

• Capitol One is offering a mileage card called the Capital One World card. There's no annual fee. The interest rate ranges from 17.99 percent to 24.99 percent.

These seem like run of the mill offers. They suggest to Clark that the major banks have adjusted to the credit card reform act and figured out how to exist in the new environment. He particularly likes the clear disclosures of terms and fees that come with each solicitation.

So which one will Clark apply for? None, he already has all the credit he needs!

MONEY-SAVING MOMENT: Paying cash instead of using credit at the register is about to become more rewarding than ever, thanks to a new law that's expected to be signed next week.

Retailers and restaurants currently get credit cards crammed down their throats by the big bank cartel. The cartel fixes the price of fees merchants are charged to process card transactions. You can either take their terms or forgo your merchant privileges to run transactions.

That's left most merchants to build those huge non-negotiable fees into their pricing. If fact, if they accept a rewards card for a purchase, those fees can often be double or higher. But within months, a retailer or restaurant will have the discretion to offer you a cheaper price for paying cash.

So you as the consumer can make the choice and get the benefit of going cash-only, which you couldn't do previously.

One other change that will come about from the new law pertains to minimum purchases on credit cards. Right now, if you buy a 35-cent pack of gum and pay for it with a credit card, well, the merchant may as well just give it to you for free. The fees they pay to process your card well exceed 35 cents.

Going forward, merchants will now contractually be allowed to set a $10 minimum on credit card purchases. That may seem like a hardship to you, but it will lower costs for a merchant and the savings will ultimately flow to you.

The banks have visited so much harm on the affluence of our country and now their influence is being dialed back. These are just two examples where you, in conjunction with businesses, will now be allowed to make decisions that the credit card cartel would not previously permit.

But we should have gone further and actively busted up the big banks. That may yet come. For now, we need to chip away step by step to let the "banksters" know we're not here as lackeys to serve their coffers. We're here to serve ours.

What's the difference between personal credit cards and small business credit cards? One can decimate the checkbooks of small businesses, while the other offers a great workaround and protections for entrepreneurs.

While politicians pay a lot of lip service to small business, they really stab this economic engine in the back with their actions. Everything they do is for the big guys who line their pockets. An example of this is a loophole in the new credit card rules that leave small businesses high and dry.

Perhaps you've heard that the interest rate can't be raised on existing balances? Well, that rule only applies to personal credit cards. Small businesses, however, are exempted from this protection.

As a matter of fact, BillShrink.com reports that over the last six months, small business credit card interest rates have gone up six times faster than interest rates on consumer cards.

In addition, what happens when you lose a personal card or it gets stolen? An individual's liability on the personal card is capped at a maximum of $50. Yet what happens in the event of loss or theft of a business card? The liability of a small business can be unlimited under current law.

So Clark has a simple strategy for you: Use personal credit cards for your business. You can pay the bill out of your business funds, but don't actually use any business cards. This is a surefire way to protect your business.

These days there are more people underwater on their mortgages than ever, so it's no surprise that Clark's Consumer Action Center gets so many calls about loan modifications.

The most problematic ones are the "temporary modifications." This is when a lender might ask you to, say, pay half of your usual payment for several months. But despite this being the lender's own proposal, some banks subsequently report you as delinquent in your payments, destroying your credit!

This reflects poorly on banks who are so reckless with your credit reputation. After all, they had agreed to accept a reduced payment for those months. So even under a temporary modification agreement, you need to verify with the bank -- and get it in writing -- whether or not you will be reported as delinquent if you choose to go through with it. If they say they will report you as delinquent instead of paid as agreed, you should not go through with the modification.

Another frustrating issue: banks won't help those who have been able to stay current on their payments. They're basically asking you to hurt the lender, and your own credit, before they'll even consider offering a modification.

Here's Clark's advice regarding loan modifications:

• Steer clear of temporary loan modifications. The only recommended kind should be permanent agreements.
  
  
• If you're already drowning and haven't stayed current, a temporary modification could honestly be a waste of your time and effort.
  
  
• The federal initiative for doing a modification is the closest there is to a "safe zone." It doesn't mean your credit is completely protected, but in general it's likely to suffer much less harm if you follow the guidelines in the Home Affordable Modification plan.
  
  If you feel a lender is not being cooperative, you can file a complaint with the Federal Trade Commission at ftc.gov/consumerprotection or 877-FTC-HELP (4357). You can also contact a HUD-approved housing counselor through the Homeowner’s HOPE Hotline at 888 -995-HOPE (4673).
  
  Finally, Clark wants you to ask yourself a tough question: Will a modification really help, or is it just delaying the inevitable? The overwhelming numbers of modifications go delinquent again soon afterward.The most important thing you can do is to be realistic about your situation.
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American Express, Capital One, Chase, Bank of America and others are violating the spirit of the new credit card law by continuing to beat up people who run a balance on their credit cards.

Clark explains: Introductory-rate offers and other factors can leave customers with multiple interest rates on one statement. You may owe 0% on some of your balance, while the rest is charged at a higher rate. Traditionally, when you made a payment, banks would apply the entire payment to the lowest interest rate balance, leaving the rest of the debt accruing at the higher rates.

Under a compromise in the new credit card law, up to the "minimum payment" amount, banks can choose which interest rate to apply your payment to. But beyond that point, they must apply the rest of the payment towards the balance in the highest prevailing interest rate. It was presumed that the banks would follow the spirit of this law and apply the entire payment to the highest interest rate. But that's not the way it’s working out.

What are the banks doing instead? They're just upping the minimum payment amounts, so they're able to apply more of your money to the lowest interest rate balance!

It's so frustrating to Clark that the recent financial reforms did not result in the dismemberment of the mega banks, as he feels this harms the American people. Despite the reforms, the banks have proven they are still going to look out for themselves.

So what can you do as a consumer to fight back? Pay as much as you possibly can each month to reduce your credit card balance. Eventually you'll regain the power. And once you get debt free, make a pledge to yourself to never run a credit card balance again!

CLARKONOMICS: Late payments on credit cards are down, according to a new Associated Press report. TransUnion has found that the percent of people who are more than 90 days behind on credit cards has dropped to just over 1 percent. In addition, the average person's credit card debt is down 11 percent year over year.

Consumer strategists believe that about one-third of the improvement in these numbers is because of the credit card reform law. The new rules forbid credit card issuers from getting you hooked on credit and then suddenly raising the rates on your balances. Now they've got to give you 45 days notice before any hikes.

TransUnion is anticipating that the rate of delinquencies will continue falling throughout out 2010 and possibly go below 1 percent. That last time we saw that tiny delinquency rate was 2007 -- the last year that the economy was strong in the United States.

It is Clark's sincere hope that the many consumers who got in over their heads with debt will take this opportunity to make a lifelong change in how they handle credit.

We have been in a mode where banking was too large a part of our economy, and the banks just sought to pile debt upon debt on people. The important thing here is for you to get financially healthy and never get hooked on debt again.

In the aftermath of the credit card reform act, there was a period when the big issuers were frozen and weren't sending out any meaningful number of new solicitations. But now they're back at it again.

The market for new credit card solicitations has essentially split into three parts:

1. Those with bad credit scores (in the 600s or below on the FICO scale) won't see a lot of mainstream solicitations. They may continue to see rip-off offers from smaller players.

2. High net worth people with good scores (740-850) may get solicitations for cards with high annual fees and high rewards. The fees may be up to anywhere from $200 to $500. Some offers from American Express have annual fees of $1,500. A card had better offer you amazing rewards to make that fee worthwhile!

3. Net payers with similarly high scores (or those who carry only small balances versus their credit limit) may see solicitations with teaser rates or even zero interest for a certain amount of time.

You can know which category you're in based on the kind of solicitations you're getting in your mailbox!

RIP-OFF ALERT: A crime that's been floating around for at least five years has become even more dangerous lately: Skimming.

Here's how it works. Criminals attach a device on ATMs that captures all the information on your ATM card. At the same time, you're being videotaped or watched in such a way that the thief can see the PIN number you punch in. Within minutes, before you even to realize it's happened, your card is duplicated, and the criminals empty your account.

Historically, the banks don't offer much help: they try to blame the customer, saying they must have given out their secret PIN. But this is baloney! Huge amounts of cash get pilfered from one machine at a time.

The Washington Post found out about a particular skimmer that had been placed at a branch of Wachovia division of Wells Fargo. The total losses haven't been determined yet, but the immediate take was $60,000 from that one machine.

As a precaution against skimming, here are some suggestions. First, when using an ATM, before you put your card in the slot, put your hand on the slot and wiggle it. ATMs without skimmers will not wiggle at all. If there is a skimmer, the slot will seem loose. (The skimmer might even pop off into your hands.) If it does seem loose, you should alert the bank so they can check into it further.

Second, to prevent "shoulder-surfers" who might be trying to steal your PIN, always place your free hand over the hand that's punching in the numbers.

Since late 2008, Charles Schwab and Fidelity Investments have offered competing 2% cash-back cards. Both were spectacular offers and led Clark to say that the discount brokerages were vying for the unofficial title of issuing the "best credit card in America."

Well, now Schwab has bailed out of the race. As of April 1, 2010, "Chuck" is no longer accepting new applications for the Charles Schwab Invest First Visa. Existing customers who already have the card can continue to use it under the original terms. But no one else can get into the game at this point.

No word yet why the Schwab offer was pulled or if it will be coming back.

We're in an era where the top five credit card issuers -- Chase, Bank of America, Citibank, American Express and Capital One -- have a whopping 70 percent of market share. Keep in mind that there are probably more than 1,000 issuers in all, and the bulk of the business is concentrated among five players!

So if you're in the market for a new credit card, look to smaller community banks, credit unions, USAA (if applicable) and military-based credit unions as issuers. You're likely to find a better deal.

Reward cards are always popular, but typically have higher interest rates. They really only benefit those who pay their bill in full each month. If you carry a balance, however, having a reward card is like trying to collect fool's gold; try instead to get a non-reward card with the lowest interest rate possible.

Then there's the question of airline mileage cards. Clark's typical advice is to avoid these kinds of cards because it's difficult to redeem miles and the airlines keep raising the number of miles you need to get a seat. The only exception to his rule might be someone like a business owner who has a high charge volume and travels often.

Clark absolutely hates debit cards and routinely describes them as "piece of trash fake MasterCard or Visas." But what if there were a way to have the debit part of your debit card turned off -- essentially rendering it only useful for ATM withdrawals?

It turns out there is! Special thanks to several listeners including Tracy and Al for letting us know how they got their institutions to deactivate all debit capabilities on their cards.

Every debit card has two limits, or sides of data, that your bank or credit union sets internally. One is the ATM side. The other is called the "point of sale" (POS) side. This POS side is the one that allows all transactions that are not at an ATM -- even ones that still require a PIN.

Your ATM side should always be active and enabled to track your current available balance. But your POS side can and should be set to zero and turned off entirely. It's just a matter of disabling the portion of the magnetic strip that accesses the debit function, leaving your card with only traditional ATM capabilities.

Bank of America, Chase and Wells Fargo all give you the option to turn off the POS function on your debit card upon your request. Citibank currently does not.

If you do this, you'll still have a Visa or MasterCard logo on the front of your card, but the POS function won't be able to read your balance. If you tried to use it as a debit card, it would see zero funds and your purchase would be denied.

Clark has talked with glee about the record-setting amount of time that credit card debt in America has been going down.

But so often, the consumer champ will get a call from someone who completes the journey from being indebted to being debt-free and they want to close their accounts. His reply? Don't do it!

You've got to rethink the temptation to close accounts once you pay them off. Doing so only turns a good thing into a bad thing. You may think, "Well, I don't want credit anymore!" But your credit history is used for so much these days.

It can help you get a fair interest rate on an auto or home loan. It can help you secure financing for a small business. Insurers check your credit when they quote you on a policy. And some employers even consult credit reports if they're between making you a job offer or throwing your resume in the garbage.

As you can see, the effects are far-reaching.

So don't close those accounts. If you know having an open credit line laying around the house would be like putting alcohol in front of an alcoholic, well, Clark has a suggestion: Cut up the card but don't close the account!

As you know, the credit card market is going through a dramatic change. This is one of those cases when the free market failed. The banks engaged in dishonest practices that led to a very politically popular interference in the free market.

As a result of the credit card reform law, there will be three phases of changes. The lion's share of changes have already happened. The last phase will take place in August, and it tentatively looks like there will be more protections for customers.

Under the Federal Reserve's proposed reform rules, banks will no longer be allowed to charge you $35 or $39 for that $2 coffee that took you over your limit. The issue of banks approving charges they shouldn't just for an excuse to fee you to death has really been a lightning rod.

Going forward, the punishment has to fit the crime. So that $2 overage will have to come with something more like a $2 penalty fee. In addition, there will be no more stacking penalties one atop another.

The new proposed rules do have some "half loaf" provisions for consumers. For example, banks will be free to raise interest on future balances -- provided they offer sufficient notice -- on a whim; no valid reason will be necessary.

In addition, when you miss a bill and get hit with a higher penalty interest rate period, the bank is not required to take you back to your normal interest rate after you make a number of timely payments.

In related news, Clark has contacted the Federal Reserve to ask if Chase's latest ploy of scaring customers into "opting in" for the right to let the bank fee them is a violation of the credit card reform rules.

The Fed's reply? Deafening silence, so far.

During the credit frenzy of mid-last decade, Clark was receiving upwards of 20 pre-approved credit card offers in the mail each week. One particular week, he brought 23 solicitations into the studio that he had received!

Now in the midst of the credit bust, credit is difficult to come by even for those who are credit worthy. But now the pendulum has started swinging back. A new report from The Wall Street Journal finds that solicitations have jumped 50 percent in the last 90 days.

An estimated 400 million pre-approved solicitations were sent in the most recent three-month reporting period. To give you a feel, at the peak, the lenders were sending some 1.5 billion solicitations over the course of three months in the past.

Today, Clark gets maybe one or two solicitations every week. His wife, on the other hand, got just three yesterday. She's obviously more credit worthy than he is.

And that's precisely what's changed. The previous risk analysis used by the lenders proved to be wrong. Now, they're making individual judgments about credit worthiness on a case-by-case basis. That's why Clark's wife is getting solicitations. Others, however, may see a big fat goose egg.

If you need access to credit and don't have it right now, you've got to start the long, slow process of building your score back up.

Two things will get the job done: First, pay every bill on time every month. Second, never use more than 30 percent of your available credit on any card you already have.

MONEY-SAVING MOMENT: As of today, the new credit card rules have been almost completely implemented. There is a third and final phase of the roll-out later this year that you'll be hearing more about. But this is the biggie we've all been waiting for.

The nation's five largest credit card issuers -- American Express, Bank of America, Capital One, Citibank and Chase -- have been dreading this day because now they have to be honest about how they rip you off!

It used to be that the credit card companies would play a con game by sending you a glossy brochure explaining all their perks, followed by pages of mice type designed to conceal how they'd rip you relentlessly.

That's why Clark calls the new rules a "triumph of capitalism." He also maintains that the nation's banks did more to undermine capitalism than Karl Marx ever did because they continually undermined people's faith in the system.

Today, the new credit card rules have changes that are very favorable if you choose to act on them.

• Your next credit card statement will clearly disclose how long you'll be in debt when you only make minimum payments. A reporter for The Financial Times of London crunched some numbers and found that the typical American with an average balance and interest rate making only minimum payments won't be out of debt until 2058! And that's never charging another penny to that card again.

• If you have multiple interest rates on your account, anything you pay over the minimum balance will be applied to the highest rate first. But beware, if you only pay the minimum, the money will still be applied to the lowest balance first.

• Banks must give 45 days notice before raising the interest rate on future purchases. Use this as a chance to "leapfrog," that is to get a new card elsewhere. Notify your issuer that you're rejecting their new terms. You'll won't be able to make any new charges, but you'll get to pay off your balance under the old agreement.

• Your interest rate on existing balances can't be raised until you're in default for 60 days.

• Any annual fees must be capped at 25 percent of your card's limit.

• Teaser rates on new cards opened going forward must be honored for one year.

• Two-cycle billing will no longer be allowed. This was a sneaky way that banks would charge massive interest if one month you paid in full and the next month you didn't.

• Adults under age 21 will need parental consent to get a new credit card. The sole exception is for legally emancipated minors.

• Billing statements must be mailed to you no later than 21 days before the due date.

• The new daily cutoff for a lender to receive payments via the mail is 5 p.m.

• It will be illegal for a bank to let a transaction run when they know you'll go over your limit -- unless you explicitly give them written permission to do so.

• Sellers of debit gift cards must clearly disclose the rip-off fees that are passed on to the user. Such cards will now have a 5-year lifespan.

The nation's five largest credit card issuers -- American Express, Bank of America, Capital One, Citibank and Chase -- issue a whopping 70 percent of all cards in the United States, according to some estimates.

With the new credit card rules now squeezing their profit margins, you can expect they'll be experimenting with every new gouge fee possible.

So what should you do? Move away from the "Gang of Five" and look for a new card from the thousands of smaller banks, credit unions and discount brokers that offer better deals.

Active military, retirees and their families have access to USAA, in addition to several big credit unions including Navy Federal Credit Union.

For those who pay their balances in full each month, Clark loves the credit cards from Charles Schwab and Fidelity Investments. Both offer 2% cash back with no games or gimmicks! (Editor's note: The Schwab Invest First Visa is no longer accepting new applications as of April 1, 2010.)

And then, of course, credit unions in general offer great deals. Visit FindaCreditUnion.com to see where you can find a credit union you're eligible to join.

You have to choose to use the power you have today. We've moved from the passive era to a more active one. Banks are no longer handing out credit cards like candy to any person, pet or child with a pulse! You've got to actively seek a new credit card.

For example, Citibank is now gouging its customers with a new $60 annual fee. Under the new rules, you now have 45 days to reply to a change in your credit card agreement. Use this time to your benefit to go look for a new card from someone else.

For the six-figure crowd with decent credit, you can expect to see a slew of credit card offers coming to you this year. The perks they offer may be great, but most cards will be accompanied by huge annual fees. You must decide if it's worth it.

MONEY-SAVING MOMENT: There have been so many questions about the new credit card rules going into effect on Feb. 22. Many questions center on what to do about Citibank imposing an annual fee on customers of $60 unless they charge $2,400 over the course of a year.

That's an indicator that banks are testing the waters with all kinds of new gouge fees now that the coming rules will restrict their more overtly crooked practices.

In light of the new rules, Clark knows that many people will be shopping for a new credit card over the next year. Thankfully, two issuers are in an amenities war to offer the best deal in America:

• Schwab Invest First Visa (No longer accepting new applications as of April 1, 2010)
• Fidelity Retirement Rewards AmEx (2% cash-back!)

Both cards have no annual fee. There are no games, gimmicks or gotchas with either. The Fidelity plan is a bit more complicated than Chuck's offering because your cash back can be disbursed to either a retirement account, a college savings plan or a Fidelity brokerage account. With Chuck, what you earn each month goes right to your Schwab account.

Charles Schwab and Fidelity are both giants in the industry and offer every service a bank does -- without all the fees. And they both rank extremely high in customer satisfaction.

Notice that Clark hasn't said a word about the interest rates of these cards. He doesn't even know what the interest rates are! That's because these cards should really only be used by people who do not run a balance.

If you do run a balance, he suggests hunting around for a credit card at your local credit union.

The Federal Reserve has issued final guidelines on the new credit card rules that go into effect Feb. 22. Here's a quick rundown of some of the highlights:

• Banks must give 45 days notice before raising the interest rate on future purchases.
• Your interest rate on existing balances can't be raised until you're in default for 60 days.
• Your monthly statements going forward will reflect how many years you'll be in debt if you only make minimum payments.
• Any annual fees must be capped at 25 percent of your card's limit.
• If you have multiple interest rates on your account, anything you pay over the minimum balance will be applied to the highest rate first. But beware, if you only pay the minimum, the money will still be applied to the lowest balance first.
• Teaser rates on new cards must be honored for one year.
• Two-cycle billing will no longer be allowed. This was a sneaky way that banks would charge massive interest if one month you paid in full and the next month you didn't.

MONEY-SAVING MOMENT: Beginning next month, when you open your credit card statement, there will be a new box accompanied by the following wording: "If you pay the minimum payment above, it will take you XX number of years to pay off your balance."

When people see this -- if you pay attention to it -- Clark hopes that it will have a major effect on your behavior.

Ever heard of the mirror trick in dieting? This is a behavior modification technique where you kill your appetite by watching yourself eat in a mirror. The consumer champ hopes the new box on your statement will be your proverbial mirror.

A reporter for The Financial Times of London crunched some numbers and found that the typical American with an average balance and interest rate making only minimum payments won't be out of debt until 2058! And that's never charging another penny again to that card!

Now that you have the knowledge, Clark wants you to act on it. Pay down those cards quicker. You can find payoff calculators at DinkyTown.net and elsewhere on the web.

Clark wants to remind everyone of the new credit card provisions going into effect Feb. 22, 2010. Here's a quick rundown of details that the consumer champ has discussed previously on the show:

• No more raising the interest rate on existing balances -- unless you fall two months behind on payments.
• If you have multiple interest rates on a single card, your payments will be applied to the highest interest rate first.
• Adults under age 21 must have parental consent to open a credit card. The sole exception to this rule is for legally emancipated minors.

Previously, Clark also told you that the retail industry had been fighting against a requirement to verify income before extending instant in-store financing. But the retail industry's efforts failed. So now the Super Bowl will be last the big selling time for instant in-store credit on big screen TVs, for example.

So as of Feb. 22, you will be asked about your income when you apply for in-store financing. Old-timers will recall this is the way credit was before the sea change in the mid 1990s when it started being handed out like candy. Going forward, it will be done on the honor system and you can be subject to fraud charges if you falsify your income.

"Would you like to save 15 percent on your purchase today?" We've all heard the pitch at the department store before.

This kind of instant in-store financing -- along with the offers of zero percent interest on larger purchases like appliances or furniture -- is a favorite among consumers.

But should you go for it? The reality is that opening in-store financing can actually demolish your credit score.

Here's why: A big part of your credit score is based on the amount of your available credit that you're using. Those store cards typically have smaller limits and it's very easy to max them out.

Ideally, you want to stay below 30 percent usage on credit cards of any type. For example, if you have a card with a $10,000 limit, try to use no more than $3,000 of it at any one time.

CLARKONOMICS: Sometimes you have to go back in history to get context on a new development.

For example, before last night, you'd need to go back to the 1970s to find a time when the New England Patriots lost a playoff game at home. Likewise, when was the last time as many points were scored in a playoff game as during the Arizona Cardinals-Green Bay Packers battle?

In a similar way, consumers have set their own astonishing record with their recent level of debt reduction. Dow Jones reports that credit card debt in November was down by the greatest amount ever since records started being kept in 1943.

We are getting healthy piece by piece as people decide they don't want to live a debt-based existence anymore.

If you go back a little over a generation ago, we borrowed around 60 cents on every dollar relative to our income. Yet a little more than two years ago, at the peak of our modern financial madness, we were borrowing up to 136 percent of annual income.

The latest figures look like we're down to between $1.24 and $1.26 of borrowing on every dollar we earn. It's not where we should be, but it's definitely along the right lines.

The powers that be in Washington hope you don't reduce your debt because it hampers short-term economic recovery if people aren't spending.

But for the long term, reducing debt is the best thing you can do for the health of your wallet and our nation.

CLARKONOMICS: The Federal Reserve reports that Americans have reduced the amount of money they're borrowing for a record nine consecutive months.

If you go back a little over a generation ago, we borrowed around 60 cents on every dollar relative to our income. Yet just two years ago, at the peak of our modern financial madness, we were borrowing up to 136 percent of annual income.

The latest figures look like we're down to between $1.24 and $1.26 of borrowing on every dollar we earn. It's not where we should be, but it's definitely along the right lines.

Our problem has long been extreme consumer consumption. Historically, we bought 17 million cars every year when we only needed about 10 million replacement cars. And we overbuilt our retail sector. It was all fueled by a seemingly endless supply of borrowed money.

The canary in a coal mine was our level of personal bankruptcy, which rose to new record levels year after year. It got to the point that one in every 70 families filed for bankruptcy. Our lives were priced for perfection because of our "no money down" consumer lifestyle.

Some of our current debt reduction is because we simply can't borrow anymore. The teller windows are all closed! But a bigger share is because many have learned a new discipline with money to avoid the anxiety and problems of carrying too much debt.

Now, economists cynically say that people's memories are short and we'll be borrowing/spending fools again. However, it is Clark's hope that the cynics are wrong. It's impossible to control the overall American psyche. Just control your own financial house by continuing to reduce debt in your life.

Meanwhile, The Wall Street Journal reports that the new Credit Cardholders Bill of Rights mandates that lenders take prudent steps to make sure you have income to pay back debt before they extend new credit. This provision could eliminate instant in-store financing. Retailers are all riled up and lobbying hard to prevent that. Let's hope the politicians have enough sense to shut the retailers down.