Credit cards are great tools to help build a credit history, but they have to be used properly or they can demolish a person’s financial status. Anyone who knows how to use money to their advantage can tell you that not all debt is bad debt. Sometimes a person can use debt to their advantage (for example, the right types of student loans and home mortgages). Consumer debt, though, is a different story.

The right types of student loans and home mortgages are investments in the long-term future of you and/or your family. Consumer debt, though, is more of an investment in the here and now – this is why it should be used sparingly. Sure, everyone falls victim to the use of consumer debt to meet their immediate wants. Hey, I spent a great deal of money buying a television last month just because I wanted it! Well, the old television was broken, too, but that’s a different story. That said, though, I do not believe that people should avoid credit cards. I think each person should have one or possibly two credit cards, but no more. I keep one to both maintain a good credit history and just in case I need access to a large dollar amount quickly (since I don’t keep much cash in my checking accounts – the money stays socked away in the savings and investment accounts).

In any event, I thought the USA Today article was pretty good and wanted to share. Enjoy!

I’m not sure about the rest of you, but there are two Circuit City stores that I used to frequent and another few stores that I’ve been in and out of from time to time. The main store that I went to was in West Long Branch and while I knew some of the people who worked there a few years ago, I have no issues with saying that the customer service at the local store was horrendous. I’m not necessarily saying that the people who worked at the store were rude, but the local store never had the cash register open. In order to pay for your items, you actually had to stand next to the register in a line waiting to go to customer service to pay! What sense does that make?!

And almost without fail you’d reach the front of the line and the person in front of you would have an issue with the item that they were buying or you’d be caught behind a person who was returning an item in an overly involved transaction. I don’t fault the customers in these situations, but you have to wonder about the quality of the store when these types of things pop up during each trip to the place…

And it would appear that many consumers did begin to question the quality of Circuit City and instead started to spend their ever-scarcer dollars at the bigger box stores like Target and Wal-Mart. But there is another reason why my local Circuit City quickly fell out of favor with consumers…

The prices!

Circuit City was notorious for charging 15% – 25% higher for DVDs and CDs than what you could buy them for at Wal-Mart or Target! And to show you how out of touch the Circuit City people are with both the market and what their consumers want, I went to big liquidation sale at the local store over the weekend and I saw that DVDs were marked down 20%. Are you kidding me? Even after the 20% discount you still wind up paying more than you would by just going to Wal-Mart in the first place!

It’s incredible, really.

And to add an insult to the bargain shoppers, the local store had no price cuts on video games, computer hardware and software, or car radios and speakers. Amazing.

So while I do feel extraordinarily bad for the 30,000 employees who will now need to find a new job, I can’t say that Circuit City closing down is a surprise. They didn’t care about basic customer service, charged way too much for their products, and didn’t stay competitive with the times. What else could you expect from such a company?

I don’t know what it is about that commercial but I think it’s nice. It has a simple little beat to it and I think I enjoy the Christmas party going on in the background. The lyrics are creative, though cheesy, and the kid singing in the song looks like a bit like a dweeb (turns out his name is John Magaro), but everyone seems to be having a good time. It’s a nice little commercial – good work by Wal-Mart and Coke!

OPEC, which accounts for more than 40 percent of the world’s supply, will next meet in Oran, Algeria, on Dec. 17. In a statement after yesterday’s meeting in Cairo, the group warned demand will be “much lower” than expected a month ago. The cost of crude has continued to slide even after the group agreed last month to lower production by 1.5 million barrels a day.

There shouldn’t be a problem with reducing the amount of oil that is generated by the oil cartel since worldwide demand is decreasing. That’s fine – that’s simple supply and demand: when demand goes down, supplies do not need to be as high. However, to reduce supply of a vital resources to a point where prices skyrocket is unacceptable. The world is taking notice of what OPEC does and its people will respond in turn.

Remember last month when OPEC cut their production by 1.5 million barrels per day? The purpose of the cut was to drive prices higher. Instead, prices sunk a few dollars per barrel on the very same day the cut was announced. Thankfully, the people of the world are beginning to seriously consider alternative energy sources and they are moving in that direction in large numbers. This shift away from a petroleum-based life is what the world needs to cut off some of these middle eastern countries who try to dictate their financial needs upon the world.

Let’s hope that demand continues to decrease as consumers continue to purchase energy efficient vehicles, household items, and renewable/resuable resources.

What does this mean for the automakers? Less inventory moving off of lots and less sales of new and used cars – both of which mean less revenue. As a consumer who is off-again, on-again in the market for a new or newly used car I can tell you that it’s just not worth buying a new car right now (so long as you have other means of conveyance). I spent last month looking around used car dealer lots and I didn’t find one deal. Not ONE decent deal! Sure, I understand that the people who work at these places need to pay the bills and eat, but you would think that in a tough economic time when an entire industry to collapsing there would be some ingenuity at the local or regional levels to cut prices and sell product.

I guess not.

In fact, the price disparities between the new and used cars weren’t even that far apart. In other words, I might as well have purchased a brand new car because I’d only be spending a few thousand more for it and I’d be getting a brand new machine with top of the line features. Oh, that reminds me – the feature packages are too expensive on new cars. Consumers know that you can get a great sound system installed in a car for a few hundred bucks (I said great sound system – not the type of system where you can take your car to a show a win awards). So when you see automakers adding $800 – $1,200 for such an upgrade, why would you purchase that upgrade? Add up a bunch of those large-scale “nickel and dime” pieces and you find yourself wondering why you’d buy a car from that dealer in the first place.

Now add all of this to the fact that American automakers have a reputation for shoddy workmanship while comparatively priced foreign cars have a reputation for lasting forever and American consumers have an easy choice to make. In this case, consumers aren’t even making a proactive choice to buy one car or another – they’re just not going out to purchase new vehicles period. But when they do one has to wonder how long they will continue to buy an overpriced, inferior, and out of date product.

Is this stuff really that hard? Couldn’t any high school student educated in basic economics come up with a solution to the “problem” that the major automakers are facing? Hey, we can even get more in-depth about a solution and tell the automakers to cut expenses – a novel idea! Or how about this one? The automakers should be making more products that the consumers want to buy. Eureka! We’ve figured it out!!!

Seriously, it is a disgrace that the big three automakers are facing the problems that they are today. These companies deserve what they’re getting – they didn’t produce fuel efficient cars in mass quantities when the consumers demanded them as far back as ten years ago and are currently doing nothing to sell the excess quantities of their product. There are a lot of people out there (like me) who would LOVE to buy a new car. In fact, you could say that someone like me is constantly in the market to buy a new car.

But most of the people in my situation are realists. We know that we can buy a good used car that is only one or two years old for 60% – 75% of the price of the same model if it was brand new. Why would anyone pay the premium to purchase the new car in this economy? With all of the executives driving the buses at these companies (pardon the pun) can it be that none of them realize that they need to cut prices in order to stimulate sales? I’m a big fan of Chevrolet (and I have no idea why since I’ve paid more to have my Blazer fixed than the thing could ever be worth). I’d love to buy a 2009 Chevy Impala. Yahoo! Autos suggests that the model I would like to buy starts at $28,000 and that the 5-year cost to own this car is $52,000.

Why would I ever buy that car in today’s grim economy? Is there no one at Chevrolet who is looking at this and saying, “Hmmm… We need to fix this problem.” Better yet – do the people at Chevrolet even see this as a problem? Here’s why they should.

I can go to Enterprise Rent-a-Car and get a certified pre-owned (used) 2008 Chevy Impala for $15,000. Read that again. I can get a one-year old Impala for about HALF of what a new one costs.

How can you fix the problem that today’s automakers are facing? Simple. Cut prices and move product. If this doesn’t happen, then you and I better get ready to pay a little bit more in taxes because you know another government bailout won’t be too far behind.