In recent days, the Consumer Financial Protection Bureau has both pushed and backed off on a plan that would limit the fees imposed on credit card holders by credit car companies.

The limit under discussion would change the way existing fees are limited. Under current law, credit card companies are only allowed to charge fees totaling less than 25% of a cardholder’s credit limit in the first year the account is open, but this limit does not include feeds issued up front when the card is opened, but before it has been used.

The policy suggested by the Bureau would have included these costs in the total fees in order to protect consumers further by keeping their total fees—including those up front costs—under twenty five perfect of the card’s limit. However, after pressure from the card companies and conservative politicians, the agency has backed off, in a move it acknowledges will hurt consumers and empower credit card companies to continue taking advantage of what many consider to be a “loophole” in the protection provision.

Credit card fee limits are amongst other considerations by the Consumer Financial Protection Bureau in recent months, with other efforts being concentrated on the mortgage industry and debt collection agencies. The Bureau was created after the debt crisis revealed the failure of the government and corporations to take necessary steps to inform and protect consumers with regard to policies and fees.

America rounded out 2010 with $800 billion in credit card debt, and this year we came pretty close—holding a whopping $798 billion in debt at the end of 2011. Where did Americans spend all that money? It’s become clear as analysts look at the unexpectedly high Black Friday and holiday sales that holiday shoppers stretched their budgets just a little too thing this season, spending over $52 billion in credit card sales during Black Friday weekend alone and surged by $20.4 billion in November.

Although these numbers seem high, the data for December has not yet been released. Considering the strong sales season retailers had, it will come as no surprise when December credit card debt looks similarly grim.

What’s making people feel so free to put purchases onto credit cards? Curtis Arnold of CardRatings.com told Time Magazine that one major factor is promotions form credit card companies that offer 0% APR for a limited time, temping consumers into using charge because there’s less immediate risk of penalty. However, he warns, when these promotional rates start to expire, it’s going to be a rude surprise for card holders who will quickly see interest charges adding up and their credit score going down.

We talk often on this blog about how to get the most out of your spending, and one of the ways we often suggest is using a credit card that offers high rewards. But it’s important to consider the pros and cons of using a rewards card, because there’s always a flipside. The fact is, while rewards cards can be a real bonus to certain cardholders, they can be (unexpectedly) detrimental to others.

Why? Simply, rewards cards fund their reward programs using interest collected on the unpaid balance of your card. This might not surprise you—of course, accumulated interest is how credit card companies make money, so it makes sense that this is how they would fund a rewards program. But the truth is, rewards cards have higher interest rates than other cards. This means that if you carry a balance on a card that offers points, miles or cash back, you’ll end up paying far more in interest payments than you would if you had a typical card.

So the question really is: will I get more in rewards from this card than I will pay in high interest? For cardholders who regularly pay off the full balance of their card and who will rarely miss payments, a rewards card is a great perk. But if you aren’t in a situation that allows you to consistently pay off your credit debt, you should think twice about using a rewards card—it’s likely that you’ll pay more in interest fees than you’ll gain in points.

While the amount of interest you can accumulate over time is unique to this type of card, the advice of considering your spending habits and overall financial stability before opening a credit card should be fairly universal. The fact of the matter is, just as reward cards are better for some people than others, even having a credit card at all might be a better idea for one individual than another. Talk with your financial planner or a representative at your local bank about your means and how much credit debt you can afford per month.