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Getting that first credit card is a big step for your child; one that can have serious negative consequences for years to come.

Your high school graduate wants a credit card. Is that good or bad?

Experts say it all depends on the child and how he or she will use the card.

“If they look at the card as a ticket to more spending, you should be worried,” said Laura Levine, executive director of the Jump$tart Coalition for Personal Financial Literacy. “If they know how credit cards work and are responsible, then it can be a good thing.”

Even though they don’t have a credit history yet, college-bound students may find offers that are comparable to what someone with excellent credit might get. The credit limit will be much lower, but the terms – including rewards – may be the same.

“This is because kids headed to college have a much higher earnings potential than those who are not,” explained Odysseas Papadimitriou, CEO of CardHub.com. “Banks know this and they want to build a relationship with them to get into their wallet as early as possible. “

CardHub.com just published its 2013 list of the Best Credit Cards for High School and College Graduates. None of the cards has an annual fee.

“A card without an annual fee allows the student to start building credit for free – and that is the number one priority,” Papadimitriou told me. “You build credit faster by using the card and paying in full each month, but you still build credit even if you throw it in a drawer or cut it in half. The card company will report to the credit bureaus that you are in good standing.”

Some other options
College kids are a prime target for credit card companies, so they will get offers as they prepare to head off to school.

The law says anyone under 21 who applies for a credit card must have a co-signer on the account or be able to show their ability to pay the bills. A part-time job could be enough to qualify.

“Parents need to remember that a lender may approve their kid for that credit card, even if they don't approve,” said Gerri Detweiler, personal finance expert at Credit.com.

Detweiler and other financial experts encourage parents not to become co-signers because of the potential risk: you put your credit on the line with no real control over how your child uses the card. Legally, you are liable for any debt they incur.

There is a better way.

John Ulzheimer, president of consumer education at SmartCredit.com, advises parents to add their age-appropriate children as “authorized users” on the card. He calls it “a credit card with training wheels.”

“This allows your child to have a credit card with their name printed on the front of it, but as the primary cardholder you maintain all the control,” he explained. “You can essentially manage your kid’s use of the card, almost in real time, and kick them off the card if they start to abuse it.”

Of course, as the primary cardholder, you are still responsible for paying the bill.

Go this route and your child gets all the benefit of having their own credit card, but you don’t have the downsides of a cosigner.

“Your child is actually building a credit history by being an authorized user because the account is showing up on their credit reports,” Ulzheimer said.

We need to talk
Getting that first credit card is a big step for your child; one that can have serious negative consequences for years to come.

Credit scores, which are based on a person’s credit history, will determine their ability to get credit in the future and what price they will pay for it.

Someone with a low credit score may not be able to rent an apartment, get a car loan or open a wireless phone account. Credit reports are now used by employers to screen job applicants and some insurance companies to set rates (where allowed by law).

It’s important to have a conversation with your child about the consequences of not managing that card properly. They need to understand that bills are to be paid in full and on time each and every month.

“One late payment can literally drop your credit score 50 to 80 points or more,” Detweiler explained. “A lot of adults don’t realize that, much less kids who are just starting out. So you want to talk to your kids about how this impacts their credit and how important it is to pay those bills on time.”

Where things stand
A new study from Sallie Mae finds that more college students these days “exercise caution with credit cards” and that’s encouraging.  A third of student card holders have a zero balance, 42 percent have a balance of $500 or less and just 24 percent have a balance of more than $500.

The survey found the percentage of college kids with credit cards has declined during the last two years, from 42 percent in 2010 to 35 percent in 2012. Freshman are least likely to have a card in their name (21 percent) compared to 60 percent of seniors.

Sallie Mae reminds students to only charge what they can afford, pay the bill before it’s due to avoid accidental late fees and to remember that a credit card is a convenience, not a source of spending money.

Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitter or visit The ConsumerMan website.

Spouses or unmarried partners who run the home will no longer be penalized for their lack of income when they apply for a credit card.

A new rule from the Consumer Financial Protection Bureau (CFPB) removes an unanticipated roadblock resulting from the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) which was signed into law three years ago this month. The law deliberately set a tough standard for anyone under the age of 21 who applied for a credit card.

The CARD Act required credit card companies to consider a person’s “independent” ability to pay – based on his/her individual income or assets – when evaluating their application for a new account. This was meant to protect students and young adults from getting deep into debt.

When the Federal Reserve wrote the rules to implement the law, it made independent ability to pay the standard for all credit card applications – not what Congress intended

The CFPB’s new rule issued last week, revises the Fed’s rule and allows credit card companies to consider the household income for any applicant 21 years or older who can show they have “access” to that shared money.

That “reasonable expectation of access” would be satisfied if the working partner’s salary is deposited into a joint bank-account or there are regular transfers to the non-working partner’s account.

Millions could benefit
“Stay-at-home spouses or partners who have access to resources that allow them to make payments on a credit card can now get their own cards,” CFPB director Richard Cordray said in a prepared statement.

That’s more than 16 million people who could qualify for a credit card, giving them the ability to build their own credit history.

“This is great news for stay-at-home parents who work hard, but don’t collect a paycheck,” said Gerri Detweiler, director of consumer education at Credit.com.

The rule change was supported by the nation’s bankers, who called it “the right thing to do,” as well as members of Congress in both parties.

 “We applaud the bureau for taking this important step that will help ensure the financial independence of millions of Americans,” said Nessa Feddis, a senior vice president at the American Bankers Association.

Rep. Carolyn Maloney (D-NY), the principal author of the CARD Act, said the CFPB made a “common-sense clarification of that rules” that does what Congress had always intended when it passed the legislation. 

The CFPB responds with amazing speed
The CFPB proposed the revised rule in October, shortly after hearing from stay-at-home moms and dads who said they were being unfairly denied access to credit.

“I am very, very pleased,” said Holly McCall, a stay-at-home mom who lives in Vienna, Va.

McCall brought this issue to the public’s attention last year after her application for a credit card was denied. Despite an impeccable credit score and a husband with a stable income, she was turned down because she did not have any personal income.

McCall, who remembers being “disappointed, embarrassed and upset with the implication,” worked with MomsRising.org to petition the CFPB to fix the problem. More than 45,000 people signed the online petition.

“I am absolutely thrilled that they were so willing to hear what we had to say and make a change for the better,” she told me. “I think it’s a victory for all stay-at-home parents and consumers in general.”

Credit card companies have six months to comply with the rule. Holly McCall plans to wait awhile and then apply for her own credit card – again.

Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitter or visit The ConsumerMan website.

Will you be sticking with your credit card longer than your spouse? For some Americans, the answer will be "yes." Overall, we are are pretty faithful to our plastic. According to Experian, the average time a credit card account remains open is approximately 129 months — or 10.75 years.

Contrast that with the fact that the U.S. Census Bureau reports that in 2009, first marriages that ended in divorce lasted a median of 8 years for men and women overall. The median time from marriage to separation was seven years.

It appears that Americans are also more loyal to their cards than their counterparts across the pond. Research by MoneySupermarket found that credit card users in the U.K. have remained loyal to their card provider for six years on average.

Related: Getting a Divorce? Here's How to Protect Your Credit

Is loyalty to a card issuer good or bad? On the plus side, holding on to your cards for a long time may help your credit rating. FICO High Achievers — those with FICO scores of 785 or above — opened their oldest credit card account 25 years ago on average; and the average credit account is 11 years old. Plus, if you've been a good customer for many years, you may be able to negotiate a lower interest rate or get a fee waived more easily than a new customer.

On the other hand, issuers are trying to woo new new customers with flashy promotions, such as the Starwood Preferred Guest Card from American Express that currently allows new cardholders to earn 10,000 points after their first purchase, and 15,000 points after spending $10,000 within six months. Just try matching the British Airways credit card 100,000 miles sign-up bonus with your current card. Fat chance it even comes close.

Related: Can You Really Get Your Credit Score for Free?

But that doesn't mean you should be fickle.

Perhaps the best strategy is to plan on a long-term relationship with your cards, and choose accordingly. But check in periodically to make sure they still offer you the best deal. If not, let them know you think you can do better — and why. They may be able to able to come up with a reason for you to stay.

If not, and you do break up with your credit card company, you don't have to end the relationship completely. You can still keep the account open in case you decide you want to come back later. Just think of it as keeping your options open.

More from Credit.com

• How Often Does Your Credit Report Change?
• Getting Married? Here Are Some Credit Tips

Kevin Winter / Getty Images

Justin Bieber will promote a prepaid debit card via social media and develop a series of videos that will promote responsible spending.

If Justin Bieber endorses a product, will teens buy it or convince their parents to get it for them? BillMyParents, a financial services company focused on teens, is banking on it. They’ve signed a deal with the pop star to endorse a new prepaid debit card to his legions of loyal fans.

With 50 million Facebook fans and more than 32 million followers on Twitter, Bieber has enormous marketing power. As a “brand ambassador” for the SpendSmart card, the 18-year old performer will promote the card via social media and develop a series of videos that will promote responsible spending.

“By combining our new teen prepaid debit card with Justin's vast reach and financial educational materials, we can empower countless families with teens to think about responsible spending in a new and better way,” said Mike McCoy, chairman and CEO of BillMyParents in a news release.

Beiber will become the face of a new version of the SpendSmart card. BillMyParents has not announced a launch date for when that marketing campaign will begin, but its public relations firm said it should happen in a couple of weeks. At that time, the SpendSmart card will get a new design, but the product features and pricing will stay the same.

SpendSmart is a prepaid debit card that can be used anywhere MasterCard is accepted. Like most prepaid cards, it has a long list of fees:

• Monthly fee: $3.95
• Loading charge $0.75 to add money from a checking or savings account; $2.95 from a credit or debit card
• ATM charge: $1.50 per withdrawal; $0.50 per balance inquiry
• Inactivity fee: $3 if the card is not used for 90 days
• Replacement fee: $7.95 if the card is lost

Is this card right for your teen?

“The good thing about a prepaid debit card is that you cannot go into debt,” noted Gerri Detweiler, personal finance expert at credit.com. “You can only spend what’s on the card, so for that reason it’s a great way to manage an allowance.”

And this Bieb-endorsed prepaid card gives parents maximum control. They can sign up for text alerts every time the card is used or download a smart phone app that makes it easy to track the balance and see individual purchases. Parents can also temporarily freeze the card if they don’t like how the money is being spent and permanently block it from being used at some retailers.

But there are other factors to consider.

Bill Hardekopf, CEO of lowcards.com, doesn’t like most prepaid cards in general and questions the educational value of this card.

“I’m not sure a prepaid debit card really teaches financial responsibility,” Hardekopf said. “I don’t know if this is the right way to go for a young person.”

John Ulzheimer, president of consumer education at SmartCredit.com, points to that monthly fee, which adds up to $47 a year. He doesn’t like the idea of teaching teens it’s smart to pay a fee to use your own money.

“That’s a very dangerous message to send a young person who is basically at the beginning of their consumer credit lifecycle,” he said.

Ulzheimer said it makes sense to pay an annual fee of $50 to have a credit card with a $25,000 limit because it gives you access to someone else’s money. But he said it is “unreasonable” to pay almost that much for a debit card where no credit is extended.

Financial experts point out that prepaid debit cards do nothing to create a credit history or build a credit score because these transactions are not reported to the credit reporting agencies. To do that, you’d need to get your child a low-limit credit card, something you can control as the co-signer.

“I like the idea of giving a young person a credit card with limits on it,” Ulzheimer said. “It’s almost like a credit card with training wheels. And teach them the proper way to use it, so when they’re out on their own they understand there’s a right way and a wrong way to manage credit.”

The hot new plastic

Demand for prepaid debit cards is skyrocketing. According to the Mercator Advisory Group, $57 billion was loaded onto these cards in 2011. That’s expected to top $168 billion by 2015.

These cards are popular with people who don’t have or don’t want a bank account or who can’t get or don’t want to use a credit card. They’re endorsed by big name celebrities, such as Suze Orman, Magic Johnson, LilWayne, Russell Simmons, Alex Rodriguez, and George Lopez. And who can forget the Kardashian Kard, launched in 2010, with fees so high it was quickly pulled off the market?

Right now, there are no government regulations on prepaid card fees, so the companies that issue them can charge whatever they want. 

The bottom line

The SpendSmart card is less expensive than some prepaid debit cards on the market. And it does have some nice parental control features. But there are money-saving alternatives.

The new Bluebirdcard from American Express and sold by Wal-Mart, can be used fee-free if you stick to in-network cash machines.

The Chase Liquid prepaid Visa debit card is another good choice. It has a flat monthly fee of $4.95.

The Kaiku Visaprepaid card is free – there’s no cost to get it. The monthly fee is only $1.95 and you can use any of the 50,000 ATMs in the Allpoint network for free.

And there’s always a conventional debit card that’s linked to a checking account. It can be used fee-free, aside from any bank charges for the checking account.

“Maybe the lesson to teach your kids is that just because it has a celebrity name on it, doesn’t necessarily mean it’s the best product for you,” said financial expert Gerri Detweiler.

More information:

• Consumer Reports: Prepaid Cards: Plastic That’s Less Than Fantastic
• Bankrate: Pros & Cons of Prepaid Debit Cards
• SmartCredit: Why Isn’t My Prepaid Debit Card on My Credit Report?
• ConsumerMan: The Truth Behind Suze Orman’s New Debit Card
• ConsumerMan: Prepaid Cards Might Not Be So Bad for Those Who Overdraft

Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitter or visit The ConsumerMan website. 

Holly McCall couldn’t believe her application for a credit card was denied.  She’d never been turned down for credit before. And why should she? Her husband has a stable income and she has an impeccable credit score.

This stay-at-home mom of two, who lives in Vienna, Va., didn’t qualify because she didn’t have any personal income.

“It was demeaning to learn that I would need my husband’s permission to get a credit card,” she said. “I was not just disappointed and embarrassed, I was angry.”

Like many other stay-at-home spouses, McCall was being penalized by unintended consequences of the Credit Card Accountability and Responsibility Disclosure Act of 2009. The CARD Act requires credit card companies to determine if an applicant can make the necessary payments. This was meant to protect students and young adults from getting deep into debt.

Based on the CARD Act, the Federal Reserve issued regulations that credit card issuers should only consider the individual applicant’s income or assets, not the household income (as had been done in the past) when deciding whether to approve the application.

McCall wanted those rules changed. She worked with MomsRising.org to petition the Consumer Financial Protection Bureau (CFPB), the new federal oversight agency, to change the rule. More than 45,000 people signed her online petition.

Last week, the CFPB proposed a rule change that would allow credit card applicants who are 21 or older to rely on third-party income if they have “a reasonable expectation of access” to that money.

“When stay-at-home spouses or partners have the ability to make payments on a credit card, they should be able to obtain a card in their own name,” said CFPB director Richard Cordray in a statement.

If approved, the proposed rule change could give more than 16 million married people who do not work outside the home easier access to credit cards.

“This is a big deal,” said Kristin Rowe-Finkbeiner, executive director and co-founder of MomsRising. “Having stay-at-home parents not being able to build an independent credit history is a problem. This means people who are working at home in unpaid labor are now again able to get credit and not be left out of our consumer society where credit cards are often used.”

The CFPB’s proposed rule change is supported by the American Bankers Association. In a statement, Kenneth Clayton, the association’s vice president of legislative affairs, called it “the right thing to do.” It also has bipartisan support in Congress.

Rep. Carolyn Maloney, D-N.Y., the principal author of the CARD Act, said she is pleased with this “common sense” clarification. “It’s recognition of how modern families truly work,” she said in a statement.

Rep. Louise Slaughter, D-N.Y., ranking member of the House Committee on Rules, said this is “crucial for women who are trapped in dangerous, abusive relationships who have far fewer options if they lack an independent credit history.”

Holly McCall told me she is “thrilled” with the CFPB’s proposal and “amazed” at how quickly the agency responded to her petition

“This is a victory for all stay-at-home-parents,” she said.

Herb Weisbaum is The ConsumerMan. Follow him on Facebook or visit The ConsumerMan website.

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 Buying under the influence, shopping after chardonnay or drunken shopping. No matter what you call it, shopping after tossing back some spirits can do a number on your budget.

When you drink, your defenses are down and inhibitions fall by the wayside. So the same way beer goggles make sex with the ex or smooching the stranger standing next you in a bar seem like an OK thing to do, so can shopping under the influence of alcohol.

And retailers know it. In fact, they bank on you walking through their doors (brick-and-mortar or virtual) wearing beer goggles.

Why booze messes with your money
The concept of "beer goggles" refers to the shortsightedness, diminished insight and lack of inhibition that comes with drinking, says Ramani Durvasula, a licensed clinical psychologist and professor of psychology who has conducted neuropsychological research on alcohol use and the brain.

Creditcards.com: Upcycling' turns credit cards into jewelry, trash into fashion

Initially, before alcohol slows down your motor skills making it tough to walk or talk in a normal manner, booze brings you out of your shell, she said. "Because alcohol lowers inhibitions, we tend to think less about ramifications of actions like overspending when drinking or intoxicated."  Those lower inhibitions, combined with the partying atmosphere associated with drinking, can also heighten impulses to shop or make money feel like it's burning a hole in your pocket, Durvasula said.

Creditcards com: Convenience fees: When is it OK to charge extra to use a credit card?

Damon Raskin, a specialist in medical detoxification at Cliffside Malibu Addiction Treatment Facility in Zuma Beach, Calif., says even one drink can alter a person's decision-making ability. "Being 'buzzed' can impair a person's ability to stick to their budget when they're shopping or lead to them making impulse purchases," he said.

That's why online retailers wise to the connection between a boozed-up brain and overspending ramp up their efforts to entice you to shop by flooding consumers' inboxes with post-happy hour deals.

"According to my raw Web statistics, one of the highest trafficked times of the day is between 7 p.m. and 8 p.m. I usually send e-blasts out in the evening, and we experience some immediate sales as a result of the e-blast," said Colleen Lloyd-Roberts, founder and president of the online retailer Top Notch Nail Files.

Merchants located next to mall restaurants that serve alcohol stock their storefronts with loss leaders hoping to lure in lit-up shoppers, too.

Creditcards.com: 8 ways to save money without feeling (much) pain

Shopping when you're not of sound mind has several ramifications, any of which can pickle your budget. Here's a look at the dangers of traipsing through the mall, either in person or online.

You blow your budget
"Shopping when you're uninhibited could lead you to totally losing track of what you have in your bank account and being at a greater risk of paying overdraft fees when the check you wrote bounces or causes an automatic debit to bounce," said Adam Koos, a certified financial planner in Dublin, Ohio.

A one-night stand with a merchant means you're also more likely to impulsively spend money you've already allotted for financial necessities such as the electric bill, rent or car payment. "If you can't return the impulse items once you sober up, it could take months to recoup the blown money and catch up on bills," said Koos. 

You're more likely to charge up debt
Drunken shopping makes you more susceptible to offers to open a store-branded credit card if your credit cards are maxed out, your checking account empty or you spy a discount that sounds too good to be true. "Shopping under the influence can lead to opening up a new card for the Banana Republic shirt you just have  to have," said Koos.

When you shop under the influence and charge the purchases, it doesn't feel like you are really spending money. But getting those credit card statements in the mail serve as a sobering reminder of your drunken shopping escapades, said Steve Repak, author of "Dollars & Uncommon Sense: Basic Training for Your Money."

"When you drink and shop, it's harder to think beyond the here and now and make smarter choices about avoiding racking up debt you might not otherwise incur," said Repak.

If you can't say no to credit card offers, your credit score could be in jeopardy.

"Your credit score will decline if your debt grows close to your available credit limit," said John Ulzheimer, president of consumer education for SmartCredit.com. 

A hard pull of your credit when you apply for new credit can shave 10 points or more from your credit score. You can't earn those points back for 12 months, said Ulzheimer.

You're at a greater risk of identity theft
Repak said diminished vision and critical thinking skills also may lead to something sinister. "You are more likely to open yourself up to identity theft," he said.

When you're pie-eyed, Repak said you're more likely to mistakenly shop on a website that's not secure (the difference between "http" and "https" in a Web address gets so tough to spot when you've been overserved). "That opens the door to your credit card information being stolen," he said.

When your defenses are down, you're also more likely to click on links that download a nasty virus that records all of your keystrokes. "That's the equivalent of giving a total stranger your user names, passwords and online access to all of your banking information," said Repak.

Oh yeah, and there's a greater chance of leaving your wallet behind at the store for an ID thief to pick up or not noticing a pickpocket has bumped into you and lifted your wallet.

Bottom line for bottom's-up shopping
Your best bet is passing by the stores and pushing away from your keyboard after having a drink or two. Can't keep out of the mall? Then shop with people you know are good at managing their money and are less likely to overspend. Just make your shopping buddy is sober!

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It’s no secret that many Americans have long relied on credit cards and other forms of debt to get what we want, or what we need.

But a new survey finds that even in the wake of the Great Recession, we may not be totally honest with ourselves about whether we are living beyond our means.

The survey of about 3,000 Americans finds that about half of the respondents spend more than they earn at least a few months out of the year.

Yet only about 1 in 10 respondents said their current lifestyle is more than they can afford. The vast majority said their lifestyle is about what they can afford.

The survey was conducted by Rasmussen Reports on behalf of Country Financial as part of the company’s monthly measure of financial security.

Of the people who spend more than they earn at least some of the time, about 36 percent said the primary response is to dip into savings to meet their financial obligations. About 22 percent said they use credit cards to cover the gap, while 12 percent delayed paying the bills.

The good news is that half the people surveyed – 46 percent – rarely or never spend more than they earn in a given month.

The difficult economy has had a devastating impact on many Americans' finances, and that has forced some to rely more on credit cards and other forms of borrowing because they don’t have the money to meet monthly expenses.

For many the recession and recovery served as a wake-up call to pare back on credit card debt and get their finances under control.

Recently, however, there have been signs that people are feeling more comfortable again about taking on debt. The Federal Reserve said last week that Americans increased borrowing in March for things like cars and education, and also used their credit cards more.

Americans also may be living beyond their means because they have less money than they used to. The nation’s median household income has fallen by about 7 percent from its peak in 1999 after adjusting for inflation.

Related:

One in four Americans has more debt than savings

The financial shocks that began in 2007 prompted a lot of Americans to change their free-spending ways, especially when it came to taking on debt.

Several years on, some Americans may be reversing course, either by choice or necessity.

The Federal Reserve said Monday that Americans sharply increased their borrowing for big-ticket items like cars and education expenses in March and whipped out their credit cards more often.

Experts say the surprising increase of more than $21 billion in consumer borrowing may be a sign that Americans are feeling more comfortable taking on debt again. Or it could be that many are running out of other options.

With the economy still relatively weak, many say it’s doubtful that Americans have forgotten the harsh impact of the recession, financial crisis and credit crunch.

“I would hope that we as consumers have learned our lesson from the economic downturn that hey, we’ve got to watch our spending and spend what we can afford,” said Bill Hardekopf, CEO of lowcards.com, a credit card comparison website. “I would think a great number of people did learn that.”

But even with those lessons in mind, some Americans may feel they have to borrow money.

Paul Edelstein, director of financial economics with IHS Global Insight, said consumers may be taking out car loans because, after years of scrimping and putting off major expenses, they have little choice.

“People are in a position where they have to buy new cars,” Edelstein said.

Are you at risk of losing unemployment benefits?

Americans also may be rushing to take on student loan debt because they’re worried about a potential increase in the borrowing rate, he said. The interest rate on certain student loans could increase to 6.8 percent in July, from 3.4 percent currently, if Congress doesn’t take action.

It’s also possible that students are taking on new student loans faster than the old ones are being paid off thanks to the weak job market, said Alex Matjanec, co-founder of MyBankTracker.com, which provides information about banks, loans and credit cards.

Revolving debt – which is largely composed of credit card debt – accounted for about $5 billion of the increase in March. Still, total credit card debt is much lower than five years ago, before the recession, housing crisis and credit crunch changed people’s habits significantly.

Hardekopf said part of the reason for the March increase could be an aggressive push by banks to get people with good credit to use their cards more. He said banks have been pushing better incentives and rewards, although interest rates have not changed much.

Hardekopf also has seen an increase in credit card offers to higher-risk borrowers with lower credit scores. After years of tight credit they may be getting tempted by the more aggressive offers, he said.

Edelstein said he doubts people will go back to the free-spending, pre-recession days.

One big reason: Housing wealth, or a lack thereof. Before the housing bubble burst many Americans enjoyed the security of having a lot of equity in their homes. These days, with so many homes underwater, people are more likely to have to rely on their paycheck.

“You don’t have that cushion,” he said.

Many U.S. consumers are so deep in a financial hole that even as the economy begins to turn around they can’t quite dig themselves out.

A survey by Bankrate.com released Tuesday found that 25 percent of Americans have more credit card debt than they have in emergency savings, and that spells trouble if an emergency situation actually hits.

Consumers are doing better when it comes to living within their means, said Greg McBride, Bankrate.com’s senior financial analyst. But, he added, years of stagnant wage growth, high unemployment, declining home values and escalating household expenses have strained wallets. “Even though there’s been progress things are still out of whack,” he said.

And the economic pictures may get even gloomier for consumers if gas prices continue to escalate, he pointed out. Last year, he said, “60 percent of Americans said they cut back on discretionary spending because of gasoline prices.”

Those hit hardest when it comes to debt versus savings, are individuals on the low end of the economic ladder and those with less education, according to the study that polled more than 1000 adults earlier this month.

Here are some of the findings:

• 70 percent of those earning $75,000-plus have more in savings than credit card debt vs. 40 percent of those earning less than $30,000 per year.
• 64 percent of college grads have more in savings than in credit card debt vs. 46 percent with a high school education or less.
• 27 percent of Americans report a lower level of financial security now versus one year ago and 24 percent report a higher level.
• 38 percent of Americans are less comfortable with their savings now compared with one year ago; only 14 percent are more comfortable.

The overall percentage of consumers who have more emergency savings than credit card debt actually inched up to 54 percent of those polled, compared to 52 percent in the same month last year. But that doesn’t mean people are necessarily more debt adverse.

“They can’t go spend money they don’t have,” McBride explained, because credit is so tight today, particularly when it comes to consumers who don’t have the best credit ratings.

A bad credit rating can also create a double whammy for those people looking for jobs because some employers now use credit reports when evaluating job candidates. That’s even worse news for individuals trying to pay off debt.

High amounts of debt and thin savings have become a fixture in U.S. society. “Over the years, the savings’ needle hasn’t moved,” he said. “From 2007 and 2011, the percentage of Americans with three months worth of expenses in savings, which is not adequate, is unchanged.”

It’s something we may be used to, he maintained, but “it’s not a recipe for people having a warm and fuzzy feeling about their financial situation.”

Student loans are now the No.1 debt burden that Americans carry, eclipsing credit card debt for the first time last year, The New York Times reports. The total is expected to hit $1 trillion this year.

Two-thirds of graduates who earned bachelor's degrees left college with debt in 2008, the Times reports, compared with less than half in 1993. The average student owes $24,000, which is usually repaid over 20 years.

Mark Kantrowitz, the publisher of FinAid.org and Fastweb.com, who compiled the estimates of student debt, told the Times a large number of Americans "will still be paying off their student loans when it's time for their kids to go to college."

Wondering how close America is to that $1 trillion? FinAid.org has a handy clock that tallies the number. According to the site, the "clock is intended for entertainment purposes only."

Oh, how quickly we forget.

The wounds from the Great Recession have yet to heal, but Americans are once again spending more, saving less and still carrying credit card debt, according to a new survey by the National Foundation for Credit Counseling.

Twenty-six percent of adults report they are spending more than they did one year ago, the Harris Interactive survey found, and nearly 40 percent of people still carry credit card balances from month to month.

While that is good news for the nation's struggling retailers, it suggests Americans are reverting to the free-spending ways that preceded the housing meltdown. It's also a sign that people are suffering from "frugal fatigue,' said Gail Cunningham, spokeswoman for the nonprofit organization.

To make this trend even more worrisome, more than 41 percent of Americans give themselves a C or lower grade in regard to their knowledge of personal finance, an acknowledgement that they lack the ability to make sound financial decisions. Nearly 50 percent of adults do not maintain a budget or track their spending.

"An admitted lack of personal finance skills coupled with increased spending is a recipe for financial disaster," Cunningham said. "People owe it to themselves and their children to become financially savvy."

Another disturbing statistic from the survey: 33 percent of adults have no emergency savings. This makes them "one flat tire away from financial disaster," says Cunningham, who suggests adults put 10 percent of each paycheck into a savings account.

Credit card issuers get all sorts of bad press for taking and taking and taking. They bilk us with high interest rates. They ambush us with high fees. They seduce us into spending more than we otherwise would.

But could it be that a few credit cards out there want to make amends and give us something? For free?

Apparently so. LowCards.com, a site that helps consumers out by rigorously comparing credit cards’ features and rates, just released a list of relatively unknown credit-card perks. Some of these little benefits are indeed quite cool. Here’s a look at what’s available if you know to seek it out:

• Head out to a museum, zoo, aquarium or lovely garden – for no money! You can score free admissions during the first full weekend of every month in 2011 if you have a Bank of America or Merrill Lynch debit or credit card in your wallet. More than 100 attractions in 26 states participate in Bank of America’s “Museums on Us” program; to see the full list, click here.
• Sick of paying to check bags on flights? The Continental Airlines OnePass Plus card and Delta SkyMiles credit card from American Express waive fees for the first checked bag on Continental or Delta flights booked with those cards.
• Tired of paying big shipping fees when you buy stuff online? Many cards work with merchant partners – ranging from Wal-Mart to Macy’s to Sears to Pottery Barn to Home Depot to Apple Online Store – that offer free shipping and discounts on purchases made with those cards. To find out what partnerships your cards have, call the customer-service numbers on the backs of the cards.
• American Express offers pre-sale tickets and preferred-seat tickets for events and concerts that run the gamut from the NBA All-Star game to Katy Perry to George Strait & Reba McEntire to popular Broadway shows.
• The Citi Private Pass card also provides pre-sale access to concert tickets -- (Rush tour!) -- as well as theme-park discounts. For instance, you can get 25 percent off admission to LEGOLAND California when using the card.

To see LowCard.com’s complete list of cool credit-card perks, click here.