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Patience is a curious thing. It is something we are taught as children and reminded of frequently as we grow older with the emphasis that it is an important quality to have – a real virtue. However, when asked if patience is a quality we possess, many of us can likely think of more instances where we’d prefer instant gratification to patiently waiting for the fruits of our labors to pay off. In today’s society, we are caught up in a need-it-now world, and anything short of that just seems like a giant waste of time.

Lack of patience gets us into a lot of trouble, specifically with our credit. The “gotta have it now” mentality is deadly to your credit score, yet we keep sliding that shiny plastic card as if our lives depended on having the latest fad. We hate to be the bearers of bad news, but the latest fad is a cycle with no end. Things that are hot this week are bound to be ice-cold the next. The same item that can be purchased for hundreds of dollars on the premiere date can also be purchased for half that price a few weeks later. By simply having patience, you can save yourself a substantial sum of money every year. Although you will not be able to blog or tweet along with every other fanatic that is bent on keeping up with the times, you, too, will have the same benefits at a much lower price shortly thereafter.

The “gotta have it now” mentality makes it all too easy to make rash decisions. A little piece of plastic is not an accurate representation of the money you have, nor does it represent the hefty amount of debt you’ll be in if you can’t keep your hands off it. We quickly spend money that we do not have without even realizing it, and charging items can cause you to incur a dangerous amount of debt in a very short time span. The better approach, while admittedly more difficult, is to save up enough money to purchase those must-haves with your own hard-earned cash. By waiting patiently, not only does the item you desire tend to drop in price, but the allure of the item often loses its appeal. Because the reality of cost versus value is more apparent when you’re paying cash, it might inhibit your spending habits a little.

When purchasing anything, whether it be the latest cell phone, a new car, or that big screen TV you’ve had your eye on, there are important things to consider:  Do you really have to have it right now?  Is it possible that you could just as easily wait until you can afford it without the assistance of your credit card? How long would it take you to save the cash to pay for it?

Patience is not only a virtue; it is the best credit tool you could possibly have. Don’t fall to the “gotta have it now” mentality. If it isn’t on the list of basic necessities to live, chances are you really don’t need it right now. Adopting an “it can wait” mentality will save you incalculable amounts of money and protect your credit score.

People may cringe at the idea of Christmas this early in the year, but in all reality it is the time to put a lock on that checkbook in preparation for the upcoming holiday season. In this economy, Christmas shopping often sneaks up, and being tied down with even more debt is sure to turn you into a first class Ebenezer Scrooge.

By September and October, many people are trying to clean up their debt, either to tie up loose ends by the end of the year or in preparation for the holidays. Whatever the motivation is, ridding yourself of debt is always a good idea. However, many people will open a credit card for Christmas – only to find themselves greeting the next year in an even bigger hole. Better cross your fingers that someone buys you a shovel!

There are several things that you can do to avoid debt during the holiday season. If there is a must-have item that you absolutely cannot pay for with cash, consider layaway. Many stores are reinstating the layaway policy due to the economy. Layaways allow you to make weekly or bi-weekly payments rather than paying the entire price upfront, without the hefty interest rates. Don’t treat layaway as a new form of credit card, though.

The “gotta have it right now” mentality is not a healthy one for the wallet, no matter how the payments are structured.

For those who prefer to save their money ahead of time, many banks have Christmas savings accounts, in which a small sum of money is drawn out of each paycheck and made unavailable until closer to the Christmas season. Savings accounts can work similarly, although you have to discipline yourself not to spend it and not rely on the bank to keep it out of your reach. You can even partition your direct deposit so that part of each check is deposited directly into savings.

Another easy way to save money around the holiday season is to buy gifts here and there throughout the year, rather than having to come up with a large sum of money at a single time. Christmas in July is the newest marketing effort most retailers are using, with many stores offering sales and discounts for those shopping early. Items that do not expire, such as gift cards, can be bought at any time and will hold until Christmas without a problem.

The holiday season does not have to be stressful. By purchasing gifts early, buying on layaway, and using a Christmas savings account, you can avoid high interest payments that bury you in debt throughout the next year.

Credit card companies have long been greasing the wheels of government with high priced lobbying, but in 2009 Congress struck a blow for the common man (and woman) – you know, the ones that actually voted for them. Few people know about the Credit Card Accountability Responsibility and Disclosure Act of 2009 and that’s exactly how the credit card companies would like to keep it, but this act puts the power back in the hands of the people and makes credit card companies accountable for their actions.

Follies of Youth

Most college students would likely contemplate selling a kidney if it meant a free pizza on Friday night. Money is tight and college cafeteria food is barely edible. It used to be that students going to sporting events or even walking around campus would be greeted by friendly credit card company reps who were passing out free stuff, from frisbees to t-shirts (letting laundry day wait one more day), just to get the students to fill out an application. It didn’t take long before thousands of college students had a lot of free shirts and a ton of credit card debt.

Credit card companies preyed on these groups because students were impulsive and an almost-sure money-maker. The credit card industry knew there were plenty of minimum payments and tons of interest to be collected from the free pizza generation. The Credit Card Accountability Responsibility and Disclosure Act of 2009 took away the credit card companies’ ability to market on campuses, much to the chagrin of dirty-shirted and hungry college students everywhere.  You can’t even get a credit card before you’re 21 anymore, unless you can prove you have income or have a co-signor. Credit card companies also can’t visit a sporting event or other venue to entice new customers without a valid reason for being there.

Interested in Interest

Credit card companies once had the ability to raise a person’s interest rates for almost any reason. Miss a few payments? Default on a previous credit card? Wear white shoes after Labor Day? Ok, so a fashion faux pas is a little exaggerated, but many people found their interest rates rising with little or no warning.  Your interest rate could jump by 18 points over night, and you were left holding the bag.

The Act has several provisions to protect the public from unreasonable interest rate increases. Companies now have to give 45 days notice before raising rates, so you can decide whether or not you want to keep the card. That 45 days is designed to give you time to pay off and close the card without incurring the new interest rate. It also keeps them from retroactively using the new rate on a balance in good standing.

We’ve all made credit mistakes, and credit card companies were taking advantage of that to increase rates if you were late on your payment by so much as a minute. The Act protects consumers by requiring a 45-day notice for increases in rate and, if you make six months of consecutive on-time payments, then your interest rate must be lowered back to the rate you had before the missed or late payments.

The main downfall of the Act is that it did not set a cap on interest rates. This means companies can still charge upwards of 30, 40 or even 50 percent interest if they want to.

Fees! We Don’t Need No Stinking Fees.

Credit card companies seem to have a fee for everything. There were late fees, over the limit fees and you-ate-too-much-chocolate-on-Thursday fees. The Credit Card Accountability Responsibility and Disclosure Act of 2009 gave credit card companies rules about when they are allowed to charge fees.  Before the Act, if you got your payment in too late at the post office or went one cent over your limit, they took the opportunity to rake you over the coals.

Now, credit card companies can only charge an over-limit fee for three consecutive billing cycles.  Also, payments made on the payment date before 5 p.m. cannot be charged a late payment fee.

Credit card companies are complying with the law, but they are counting on consumers not knowing about their rights. Grab the credit bull by the horns and turn your credit score around by exercising your ability to take control thanks to the Credit Card Accountability Responsibility and Disclosure Act of 2009.