It’s important to understand that credit cards weren’t really created to use on an everyday basis. The first cards were really merchant cards and they were meant to simply help out preferred customers by extending their payments a few months. Shoot, they didn’t even charge interest.

But today’s cards look nothing like that. Today’s cards are so filled with fees, penalties, and interest, they bear no resemblance whatsoever to their ancestors. But they sure are easy to use aren’t they? And that’s where the problem lies. You see, you can use your credit card for purchases like your morning coffee, lunches, topping off your gas tank, etc. And you almost never have to carry any cash. Pretty soon, you stop thinking about the real cash you’re spending (because you don’t see it) and you begin to lose track of your actual spending.

When you lose track, you lose control. It becomes easy to spend more than you actually have and to go beyond your limit. And that’s when the fun really begins because the credit card companies don’t lose track and they’re as happy as can be when you go beyond your limit. That’s when they can charge you overdraft fees, and late fees, and change your interest rate, and change your minimum payment. And suddenly, in the mere blink of an eye, you’re looking at a credit card balance that will take double-digit years to pay off at the minimum payment rate. You’ll find your budget shredded and your life a mess.

So take care. Treat your credit cards like the little booby traps that they are. Pay attention to your statements and watch your balance online – daily if possible. Only use your cards for truly needful things or don’t use them at all. Or better still, switch to prepaid debit cards. But if you must use a credit card, make sure your credit card purchases are special events and not everyday occurrences. Otherwise, you could find yourself slipping into the financial mud.