In recent years American consumers have racked up a staggering $900 billion in debt. Much of this debt is due to the housing bubble and the associated mortgages and credit card abuse. For many Americans credit cards have become a way of financing a life they really cannot afford. To avoid this, you need to have firm grip on reality and an understanding of how to use credit cards wisely.

The best thing you can do to keep from becoming a member of the growing debt problem is to use cash for everything you can. Avoid using your credit card for anything unless it is an emergency. In fact, keep only one credit card for just emergencies. Anything beyond that is more than is necessary for most people.

If you do need to use your credit card, make sure you pay off the entire balance at the end of the month. If this is absolutely impossible, at the very least pay as much as you possibly can, not just the minimum payment. At the minimum payment level on most credit cards, it can take as long as 20 to 30 years to pay off the balance! If you doubt it, just have a look at some of the testimony available online about people that have gotten themselves into credit trouble. It is very easy to get onto the slippery slope of credit abuse and find yourself on the verge of bankruptcy without even realizing it.

Along with the things you should do to maintain responsible credit card usage, there are some things you should not do, as well. First, don’t carry a credit card with you. This way, you won’t be tempted to pick up that item at the store that you don’t really need, but really want. By the same token, you shouldn’t keep your credit card near your computer, as it can be very easy to use it to purchase things online that you don’t really need, either.

In order to make sure you get the best possible interest rates, you will want to do the things necessary to maintain an excellent credit score. The most important thing is to make your payments on time. To get the best possible score, you will need to carry a balance from month to month. While this runs contrary to the advice given above, remember that what you are trying to do is get the best possible score so that you can get the best interest rates. Once this goal is achieved, then you can follow the advice above. Just don’t let that balance out of hand.

Credit cards can be a blessing or a curse, depending on how you choose to use them. If you treat them with the proper respect, credit cards can provide an excellent emergency funding source. Abuse them, and you will them to be your worst enemy and one-way ticket to the poor house. If you follow the advice given above, then you should find that credit cards can be a blessing to you.