Personal finance from around the Web:

• If you owe more than your home is worth, you shouldn't feel so bad about defaulting on your mortgage, suggests a University of Arizona law professor. For his full explanation of how the government, the media and the financial industry are ganging up to make homeowners bear the brunt of the housing collapse, read his research paper. [The Consumerist, WSJ.com]

• Haven't used your credit card in a while? Prepare to get slapped with an "inactivity fee." [MyBankTracker]

• Fidelity cut its 529 college savings plan fees and changed its age-based allocations this month. My Money Blog offers a handy summary of the changes. [My Money Blog]

• Don't be fooled into thinking you're saving money every time you buy something on sale, use a coupon or get free shipping: There's a good chance you're getting played. [It's Your Money]

• You may be planning a staycation to save this year, but not everyone has to scrimp. Check out the world's most expensive hotel suites. [The Business Insider]

Follow More Money on Twitter at http://twitter.com/moremoneyblog.

• Imagine the perfect gift card: Able to be used anywhere, anytime, without any restrictions. Uh, guess what? It's called cash. [The Wall Street Journal]

• Beware of boilerplate requirements in mortgage commitments. Sometimes you can wriggle out of them. [Tales from the Real Estate Wars]

• Has a friend or relative asked you to co-sign for a credit card or other loan? Here are four excellent questions to ask before you go through with it. [CreditCards.com]

• Maintaining your credit is like keeping yourself fit. Now is not the time to stop exercising what you have. [The Huffington Post]

• Worried about running out of cash during your retirement years? Here's some good advice on how to get the most from your Social Security benefits. [RetirementRevised]

Follow More Money on Twitter at http://twitter.com/moremoneyblog.

In the year-ahead outlook for savings and credit that I wrote for MONEY's December issue, I reported that things weren't exactly going to be rosy next year. But I did point out one potential bright spot.

"Customers who have been on the receiving end of 'gotcha' practices that will earn banks $38.5 billion in overdraft fees this year may also get some relief," I wrote. "Many Capitol Hill watchers believe legislation reforming overdraft policies has a good chance of passage in 2010."

As I reported my story, I talked to several sources who felt that credit card legislation, which passed in May, gives overdraft reform some good momentum. Then, last week, the Fed announced new rules that would also limit overdraft fees charged by banks and credit unions. (See fellow MONEY blogger Beth Braverman's take on five ways you can protect yourself now.)

The Fed rules, which require that banks allow consumers to opt-in to overdraft protection on ATM and debit card transactions, are a step in the right direction. But as consumer advocate Ed Mierzwinski told The New York Times, "Some-of-the-time protection is never as good as round-the-clock protection." More

Five personal finance highlights from around the Web:

• More credit card company shenanigans: One cardholder shares her experience with Citi: The bank will double her interest rate unless she transfers $5,000 of other debt onto her Citi credit card. [Consumerist]

• Thinking about regifting something this holiday season? Brad Tuttle has some rules on how to do it right. [It's Your Money]

• When it comes to car insurance, pricing is based on 10 factors that are out of your control. So it pays to shop around. [MintLife]

• Maybe you can time the market. A new study challenges the notion that it can't be done. [The Big Picture]

• Recent credit card reform has prompted the industry to enact the Safe Credit Revision Everyone Wins Undertaking, also known as S.C.R.E.W.U. Animator Mark Fiore explains it in the video below. [The Consumer Reporter]

Five  interesting stories from around the web:

• After a two-day policy meeting, the Federal Reserve Open Market Committee released a new statement Wednesday, indicating that it would not raise the benchmark interest rate anytime soon. Bankrate.com translates the statement into plain English in this handy table. [The New York Times, Bankrate.com]

• Bank of America pledged to stop increasing interest rates for current cardholders, only to announce the introduction of new annual fees for some users starting next year. Odysseas at WalletBlog alleges it's a bait-and-switch — and a violation of the forthcoming CARD Act. [WalletBlog]

• Your bank account balance rises after you sign up for text-message reminders to save, concludes a new study. [It's Your Money]

• Sign up for the British Airways Signature Visa card and get 100,000 bonus miles, one of the most generous offers around. [Bucks]

• Intuit closed its deal to acquire money management site Mint.com this week, and it comes with the news that all Quicken Online users will be migrated over to Mint in the coming months. [TechCrunch]

Of course you already use Google to look up movie times, settle trivia disputes or stalk, er, "research" former flames on the Internet. But the world's most famous search engine can also help you save some dough. Here are five money-saving Google features you might not know about:

1. Google 411

I only learned about this one when my uncle — who lives in Pakistan, no less — emailed to tell me about it. More

Will success spoil Mint.com? That's the $170 million question following Monday's news that tax software giant Intuit is spending that whopping sum to buy the startup, which operates a popular, free online service for tracking and managing people's financial lives. (MONEY gave Mint top honors last year when we reviewed four online money trackers, including Intuit's.)

Even though the Internet is all about change, users of both Mint.com and Intuit's free QuickenOnline.com are suddenly anxious about changes that might result from the deal (which is expected to close by year's end). Maybe it's because personal finances are so…you know, personal. More

A personal finance course at Wellesley College in Massachusetts is one of America's 10 Hottest College Classes, proclaims The Daily Beast. An impressive feat, given that other courses on the list include a Yale lab that takes students on a trip to an Amazon rain forest and the University of Michigan's History of College Athletics, which brings in storied Big 10 football coaches to address the class.

One former student of the personal finance course told The Daily Beast: "Students take out loans and credit cards all the time without even thinking about it. [The class] should be renamed ‘life skills’ and be mandatory." More

Older nonwealthy Americans are racking up credit card debt at a rate that outpaces other groups.

People age 65 and up carried an average of $10,235 credit card debt in 2008, according to a study released Tuesday by  Demos, a public policy research group. That's an increase of 26% since the organization's last survey of low- and middle-income borrowers in 2005. The average debt for all borrowers in the survey rose just 3%, to $9,827, during that same time period.

Rising health care costs may be one reason seniors are turning to plastic, the study shows. More than half of indebted families surveyed cited medical expenses as a major factor that contributed to credit card debt; the average household, in fact, attributed $2,194 of credit card debt to medical expenses. Senior households, however, blamed almost $4,000 of credit card debt on out-of-pocket medical costs. Prescription drugs were the medical expense most often cited.

Another key finding in the survey, aptly titled "Plastic Safety Net," contradicts the notion that credit card debt is strictly a result of frivolous spending. Three out of four households surveyed said they used credit cards to pay for expenses including car and home repairs, job loss, college attendance, loans to relatives and operation of a business. More than a third of households reported relying on credit cards to cover basic living expenses for five of the last 12 months. Households that used credit cards for basic living expenses had a much higher average balance — $13,302 — than those who did not ($7,795).

Results were based on a phone survey between April and August 2008 of 1,205 low- and middle-income households whose incomes fell between 50% and 120% of the local median income. Participating households had to have credit card debt for more than three months at the time of the survey.

Has a big company done you wrong? Trying to get it to address your problem isn't always easy. Sure, you can email a complaint to the customer service department, or you can beg for mercy over the phone. But that doesn't mean you'll get the results you want.

Well, one disgruntled United Airlines customer found a creative way to get the company's attention.

When Canadian musician Dave Carroll was flying from Halifax to Nebraska on March 31, 2008, he changed planes at Chicago's O'Hare International Airport. There, another passenger noticed some rough handling of luggage out on the tarmac, exclaiming, "My God, they're throwing guitars out there." Carroll says he looked out the window to witness baggage handlers throwing a bass guitar. And when he got to Omaha, he discovered that, sure enough, his $3,500 Taylor guitar was "severely damaged." It would cost him $1,200 to get it repaired.

Carroll filed a complaint with United and spent the next nine months haggling with United reps for compensation, to no avail. Exasperated, Carroll "promised the last person to finally say no to compensation … that I would write and produce three songs about my experience with United Airlines and make videos for each to be viewed online by anyone in the world," he wrote on his web page.

Carroll unveiled the first of those videos this week. "United Breaks Guitars" is a catchy, twangy ditty about the musician's experience, and with more than 520,000 views in just a few days, it's become a viral video success.

So much, in fact, that United Airlines itself is taking note. A United spokeswoman told the Chicago Tribune: "This struck a chord with us. We are in conversation with one another to make what happened right." The company has gone so far as to praise Carroll and wants to use the video "to help change its culture." Meanwhile, Carroll is working on the next two songs and videos.

Sometimes drastic situations call for drastic measures. How have you gotten your complaint noticed by a company that won't recognize its wrongs?

Bank customers used to the perks of free checking accounts — unlimited check writing, online banking, debit card use and ATM access, to name a few — might have to recalibrate their expectations soon. That's because overdraft fees, which banks use to subsidize the expense of free checking accounts, have been under fire by consumer advocacy groups. (A quick primer: You spend $8 on lunch at Burger King and pay with your debit card. But there's only $5 in your checking account. The transaction is still approved, but the bank slaps you with a hefty overdraft fee for the privilege.)

There have already been some changes to the way banks must disclose overdraft fees on statements, but now there's a bigger push to require institutions to obtain accountholders' permission before charging them overdraft fees on debit card purchases and ATM withdrawals. President Obama's proposed Consumer Financial Protection Agency would likely address overdraft fees in some way.

That spells trouble for banks already hurting from the financial crisis. The bulk of revenue in bank retail deposits comes from penalty fees; economic research firm Moebs Services estimates that banks will rake in a total of $38.5 billion in overdraft revenue this year. In fact, a 2008 FDIC study concludes that 74% of all service charges on deposit accounts come from overdraft and insufficient fund fees, which typically range between $35 to $40 per incident. But there's a small amount of consumers who shoulder most of the fee load: According to a May report from consulting firm Oliver Wyman, 68% of those fees come from just 5% of banking customers (who pay, on average, $1,614 each year). Meanwhile, 74% of customers pay no overdraft fees at all.

But with banks expecting roadblacks to fee income, some experts predict that the free-checking model might be on its way out. Aaron Fine, author of the Oliver Wyman report, recently told banking industry trade publication American Banker, "The industry has to change pretty dramatically because a substantial amount of the revenue that paid for free checking is likely to go away. That business model is not sustainable."

For now, there are still plenty of free checking options out there, and many experts expect them to remain in some format so that banks can compete for customers. But Probity Financial Services, a small company based in Austin, Texas, partnered with Missouri's Kennet National Bank in April to offer an alternative to those consumers who are tired of paying hundreds of dollars in overdraft fees each year. For $19.95 a month, you can set up a Probity online checking account that never charges overdraft fees, transaction fees, minimum balance fees and offers free online bill pay and ATM/debit card usage.

"We're like Netflix for your checking account — you pay a fixed monthly fee and use it all you want," says Probity CEO Tim Smith.

For those consumers who spend more than $240 a year on overdraft fees, Probity's checking account is a good solution. Each customer is assigned an overdraft limit (no more than $500) based on credit and banking history. If the customer makes a purchase for more than what's in his account, Probity covers the excess. To keep the account in good standing, the customer must deposit funds into the account within 60 days, or it will be closed. "The lion's share of accountholders do bring the account into positive balance," says Smith. He adds that most customers use direct deposit and typically just need the protection until the next paycheck comes in.

Still, $240 a year to avoid overdraft fees? Unless you're one of those 5% of customers who spend more than $1,500 each year on those fees, there are still plenty of cheaper options to prevent overdraft pain. (And if you are one of those 5%, can you let me know how the heck that happened?) Many banks allow you to link your checking account to your savings account to cover overdrafts. And there are plenty of ways now to keep tabs on your account balances with email and text alerts. Free checking may be teetering, but it's not going to vanish overnight.

The new credit card reform law is full of good consumer protections, but here's one you might not know about: It's going to require companies like FreeCreditReport.com (owned by credit bureau Experian) to clearly state that their services aren't actually free.

Who doesn't love those FreeCreditReport.com commercials? You know, the ones featuring the lovable 20-something singing about his credit troubles in a variety of musical genres? In the first, he's dressed in pirate gear and crooning about how he has to work in a seafood restaurant because his identity was stolen (it works best if you don't think too hard about it). My favorite jingle is the one that has him singing about how he married his dream girl, only to find out that her credit was bad, too. You can see all the commercials here:

The only  problem, of course, is that FreeCreditReport.com is not really free. In order to get your report through the site, you must sign up for a trial membership in the site's "Triple Advantage Credit Monitoring" program. If you don't cancel your membership within a 7-day trial period, you're billed $14.95 a month. And plenty of people have fallen for the site's promise without realizing they were going to be billed. The Better Business Bureau has received 9,865 complaints about the site in the last 36 months, with some complainants saying that they kept being billed even after canceling membership.

But now, thanks to the Credit Card Accountability, Responsibility and Disclosure Act, companies touting free credit report services must disclose in their ads that consumers are entitled by law to receive a free credit report from each of the three credit bureaus, and that the official web site to obtain them is AnnualCreditReport.com. And radio and TV ads must clearly state, in both the audio and the video, "This is not the free credit report provided for by federal law."

That's good news, since the web-only public service commercials the Federal Trade Commission created in response to FreeCreditReport.com's ads need all the help they can get:

Are you drooling over the new iPhone 3G S, anxious to get your hands on Apple's latest creation this Friday? If you plunk your money down for the shiny new toy, maybe you need to take another look at your finances.

At least that's what suggested by the blogger who runs Free From Broke, which he bills as "A Personal Finance Blog for Regular Folks." In a recent post, FFB collected his observations on 25 traits of the "not-so-well-to-do." I had a laugh going through his list. He argues that, individually, the traits aren't bad per se, but if you spot too many in some people, there's a good chance they're blowing through cash they might not even have. And number 7 on his list is always buying the latest cell phone.

Some others:

• Subscribing to too many premium cable channels ("When you mention that it’s expensive they insist that it’s cheaper because of a package.")
• Always buying the latest gadgets and newest computers ("[They] go through computers like my two year old goes through diapers!")
• Not having an online savings account ("…they don’t trust online banking, or so they claim. Yet they seem to be able to use their computers to shop online without trust issues, hmm.")
• Eating out often and expensively ("It’s great going out with these people because they are quick to pick up the tab and/or leave a ridiculous tip.")

He makes some sense to me. The temptation to buy every latest technology is strong, but giving into it ofen produces a short-lived high — and only leaves you wanting more. And unless you've got a healthy disposable income, keeping up is not easy on the wallet. Some of his other assessments seem like common sense (buying holiday gifs you can't afford is never going to be a financially sound idea), while others discourage indulgences (hey, I like my HBO).

What do you think? Is FFB's list right on, or does it just boil down to the most basic rule: Don't spend what you don't have? Share your thoughts in the comment section below.

The credit card industry is on shaky ground right now, with banks fretting over recent legislation that will rein in some of their most abusive practices and a decline in credit card spending on the whole.

But Chase Card Services is hoping to win some customers back by unveiling its new Ultimate Rewards program Thursday. Similar to the Citi ThankYou Network or American Express Membership Rewards, Ultimate Rewards will serve as Chase’s flagship rewards platform.

The program allows cardholders to earn at least one point for every dollar spent. Points can be redeemed for cash, travel, merchandise, gift cards or statement credits through the rewards portal at UltimateRewards.com. Here's a closer look at the program:

The good:

•    There are no spending caps or tiers to earn rewards. So cardholders will get at least 1 point starting with the first dollar they spend, all the way to the last.
•    Points never expire, and there are no limits to the number of points that can be redeemed in a year.
•    There are several opportunities to earn more than one point per dollar spent. Airline travel booked through the Ultimate Rewards Online Travel Tool and paid with a Chase credit card will earn two points per dollar. Shopping through the Ultimate Rewards Bonus Mall can earn cardholders up to 10 points per every dollar spent.
•    Thus far, it looks like one point is worth about one cent when it comes to cash, statement credit and travel redemption—effectively, 1% back, which is a decent rate, given the times. Redeeming points for merchandise, however, will be more expensive. The fact that cashback is actually cheaper bodes well for consumers.

The bad:

•    Chase Freedom used to be one of MONEY’s top picks for cashback cards, when it offered 3% back in three of 15 categories (like groceries and gas) in which you spent the most each month. They got rid of that feature last year, opting for 3% back in categories that revolve each quarter, much like Discover’s Cashback Bonus Rewards program. With Ultimate Rewards, this will continue.
•    Cardholders who want to earn a fixed 3% back in the grocery, gas and fast-food categories must pay a $30 annual fee.
•    Cardholders must accrue $50 before a cashback check can be issued (though statement credits can be issued at any level).

The unknown:

•    The program’s travel tool, which can be used with points, cash or any combination of the two, boasts “no restrictions or blackout dates for airline travel redemptions.” Sounds good, though Chase spokesperson Rob Rosenblatt says that the tool ties into all the airline reservation systems, so it remains to be seen how flexible it will actually be.
•    Only two Chase cards operate on this platform (Freedom and the new Sapphire card for affluent Chase customers), though others may be added later.
•    While the two cards on the platform don’t require an annual fee, Chase is offering a Sapphire Preferred card for $95 a year. It will come with additional perks, such as the ability to transfer points to other travel rewards programs.

Given the cry from experts across the industry that rewards programs will all but shrivel up, the fact that Chase unveiled this program now is what makes it so noteworthy. "I think this could be a turning point for the reward cards market. There is some scaling back, but for the most part this issuer is trying to make its program competitive," says Curtis Arnold of CardRatings.com. "When a major issuer like Chase bucks the trend with this announcement, other issuers are likely to follow."

Consumers scored a major victory on Tuesday as the Senate voted overwhelmingly in favor of a bill that restricts unfair credit card practices. The Credit Card Accountability, Responsibility and Disclosure Act passed by a 90-5 margin. The bill comes on the heels of similar legislation, known as the Credit Cardholders Bill of Rights, that was approved by the House on April 30 in 357 to 70 vote.

So what happens now? The Senate bill heads back to the House for a vote, and there’s a good chance it could hit the President’s desk before Memorial Day. But what do both bills mean for your wallet? Let’s look at the key provisions:

Retroactive rate hikes: Both bills ban hikes to interest rates on existing balances. So say you carry a $1,000 balance at 8%. If the rate on your card changes, the new rate will apply only to new purchases going forward—the issuer won’t be able to start charging 19% on the previous balance. The only catch: If you fail to comply with a debt repayment workout plan or if you are more than 30 days (House bill) or 60 days (Senate bill) late on payments, all bets are off. What’s more, both bills prevent issuers from raising your interest rate during the first year of the card account.

Penalty periods: If you are late and your rate goes up, the Senate bill states that if you pay your bill on time for 6 months in a row, you can reclaim the lower rate.

Advance notification: Time was, your issuer could jack your card’s rate and only give you 15 days notice. No more. Both bills require that issuers must give you 45 days notice before making significant interest rate, fee and finance charge increases.

Teaser rates: Both bills require that promotional rates must be offered for at least six months.

Payment allocation: You may have a balance transfer on your card at one rate, while other purchases or balances accrue interest at a different, higher rate. Before this legislation, banks could apply your payment to the balance with the lowest interest rate first—so your more costly balance just kept racking up interest. Now, payments in excess of the minimum amount owed must first be applied to the balance with the highest interest rate first, and then to remaining balances in descending order.

Due dates: Credit card statements must be mailed 21 days before the bill is due, up from the current 14. And no more odd timing deadlines for payments—payments received by 5 p.m. on the due date are on time. Payments with due dates that fall on holidays or weekends must be accepted by the next business day.

Over-the-limit fees: Before, if you tried to charge above your credit limit, the issuer would approve the transaction and slap you with an “over-the-limit” fee. Now, consumers must opt in for over-the-limit approval—and the fees that come with it.

Cards for young adults: The House bill stipulates that banks can’t issue cards to un-emancipated minors under the age of 18 unless a parent is the account holder. It also limits college students to just one credit card, sets credit limits to a percentage of the student’s income and requires parents to approve increases to credit limits on joint accounts. The Senate bill takes it even further, eliminating credit cards for people under the age of 21 unless an adult co-signs or they can show proof of income.

Gift cards: The House bill doesn’t touch them, but the Senate bill states that gift cards can’t expire in less than five years. Retailers selling Visa, MasterCard, American Express or Discover-branded gift cards will have to print information on dormancy fees—charged when the card goes unused for a while—right on the cards themselves.

Universal default: Both bills eliminate this practice, which allows a card issuer to raise your rates if it learns that you were late on another card.

Account closings: The Senate bill doesn’t address it, but the House bill requires an issuer give you 30 days notice before it closes your account.

Many of the provisions in these bills are already addressed in the Fed's credit card regulations, which are slated to take effect in July 2010. Will this legislation make it happen sooner? The House bill was scheduled to take effect 12 months after passage, while the Senate bill planned for nine. We'll keep you updated on what the final law looks like–and when you might start benefiting from it.