Millions of Americans have credit cards. Some of them manage them wisely. It is those who don't that cause financial advisors to tout the advantages of being debt-free. Which is a great idea.

However, many people use credit cards. They use them for many reasons. Some people use them to track their spending. Some feel like they are getting something from the rewards. Many use them for emergency accounts. Whatever the reason, you have to use them wisely. Or you will regret it.

The single most important thing you can do with your credit cards is to pay them on time every month. Don't miss the payment by a day. This can increase your interest rate, incur a late fee and hurt your credit score. Pay at least the minimum on time.

Ideally, you should pay off your card each month in full. This prevents interest charges on your balance. If you are unable to pay it off, you should make as large a payment as possible. This will save you money on interest charges.

If you find that you are unable to pay your balance in full, you should stop using the card until you pay off your balance. Step back and take a close look at what you earn and what you spend. If you are spending more than you earn, you are heading for trouble. This is the time to look at your budget.

If you have two or more cards with outstanding balances, you might consider moving the balances to the cards with the lowest interest rate. You will save money on your interest charges and only have to keep track of one payment.

If you have a good credit history, you should definitely call your card holder and ask them to lower your interest rate. I did this recently and was surprised at how easy it was and how helpful the customer service was. Remember, it never hurts to ask.

When you have credit cards, you must be aware of the potential for identity theft. Never let your payment sit in your mailbox, instead use a postal box. Watch to make sure that you recieve a bill each month. If you use the internet to pay your bills, you can request that your paper bills be stopped. Make sure that you sign your card when you recieve it. Never throw anything into the trash that has your account number on it without shredding it first.

You should review each monthly statement carefully for accuracy. You should also review your credit history on a regular basis. Beyond identity theft, sometimes companies make mistakes. You should watch for inaccuracies by checking your credit report at least once a year.

There are some items that are worth the interest cost for you. If you use your credit cards wisely, you should be okay in the long run. But you must diligently watch how you spend and how you handle your credit cards. They can so easily get out of control.