I use a cheap pencil-type soldering iron ($10?) and use a sheet of plate glass as a cutting surface. Masonite (hardboard) and Formica will do as work surfaces, too, but don't use the kitchen counter.
Grizz suggested a hot knife with a built-in backing plate that slides under the fabric as you cut, so you don't need a heat proof surface. Looks nifty, but expensive.
Whatever you do, discipline yourself to always put the hot knife down somewhere safe before you shift your material. damhik, damhik, damhik.
Working outside provides better ventilation, but beware of breezes. damhik redux
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