In December, major credit card reform was finally announced by federal regulators. Consumer advocates have been working for years to get many of the changes in place. One of the biggest new regulations applies to interest rates on existing balances. Previous rules allowed companies to change borrowers’ interest rates on existing balances with very few regulations. For example, some borrowers found their rates increasing when their credit score dropped, even if they had never missed a payment. The new rules prohibit companies from upping rates on existing balances as long as the borrower stays current on their payments.

Experts are emphasizing that the changes are not mandatory until mid-2010, and regardless of credit card rules, being credit-card savvy is always a wise move. Whether you are using a personal financial software package, a spreadsheet, or even pen and paper, make sure you know your balances and interest rates. Focus on paying off the higher-interest rate cards first, while never missing a payment. As your credit score improves, you’ll be eligible for cards with better rates.