The low-balance cardholder

You carry a moderate balance ($2,554 was the median in our survey), and you always make your minimum monthly payments. But that balance, manageable with a single-digit interest rate, can become unaffordable when the rate goes up.

That was the case for John Herbert, of Andes, N.Y. His payments for the roughly $3,900 balance on his Washington Mutual card were directly debited from his checking account each month, so he never paid late. But when WaMu's credit-card business was acquired by Chase, the interest rate on Herbert's balance jumped from 9 percent to 16 percent, then to 24 percent. When he asked why, Chase blamed his credit score, though Herbert says his credit score is a healthy 741. As a retiree on a fixed income, he couldn't pay the balance all at once, so he took advantage of a no-interest balance-transfer offer from Discover and closed his account.

What to do

• Roll over balances to cards issued by credit unions or regional or community banks. Credit cards from federal credit unions are capped at 18 percent APR, so even if you do fall behind on payments, you'll avoid the 30 percent default rates some major cards charge. But credit unions have the option of taking funds from any deposit account you have with them to cover credit-card defaults. You must join a credit union to get a card, but the requirements are often simple. You can join the Pentagon Federal Credit Union with a one-time payment of $20. Pentagon's Visa Platinum Cash Back has a 5.99 percent APR on balances transferred for life (it carries a 2.5 percent transfer fee capped at $100). Go to CUlookup.com to find a credit union in your area.
• Check the APR and the fee for transferring a balance. Virtually all balance-transfer offers now come with a transfer fee, and they've been climbing—5 percent isn't uncommon. Some cards also have higher interest rates for balance transfers, so beware.
• If you're planning a purchase that you'll need a year to pay off, consider switching to a card with a low introductory rate.
• Set up automatic bill payment. Until the new law goes into effect in February, just one late payment could trigger the default APR, so make sure you pay on time.
• Read all notices from your credit-card issuer. If your terms are changed, you can opt out of the new terms. Your account will be canceled, but you can continue to pay off your balance under the old terms.
• Ask to have your interest rate lowered. If you're worried about meeting your payments, see whether your card issuer offers payment plans or hardship programs.