With all the credit card debt out there, it seems like it would be helpful to define what appropriate credit card usage is.

This begins with a preliminary observation. That is simply this – credit card usage is a choice. Thus, if you’ve proven to yourself that you can’t use them appropriately, then you’re better off (and so is your bank account) if you simply stop using credit cards.

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1. Always pay off your balance in full every month.

Good guidelines always have good consequences. In this case, I suggest that if you ever go beyond this rule that you should either stop using credit cards for a six month period, or stop using them all together.

Credit cards in the hands of people who don’t pay off their bills are a very dangerous thing.

2. Never purchase anything over $100 (or a similar threshold) on a credit card unless you decided to buy it before you left the house.

This has been a long standing rule in our home. If I’ve left home with the plan to buy a TV for $300, then I can use the credit card because it is not a spontaneous purchase. If, however, I’m standing in front of a nice new TV, I cannot use the credit card because I may be tempted to go beyond my budget.

3. Never purchase anything over $100 (or a similar threshold) on a credit card without discussing it with your spouse.

Discovering a larger than normal purchase when looking over the bill at the end of the month is not an appropriate way to find out about a household expense. Communicate with your spouse beforehand.

4. Always review your monthly statement.

One of the keys to credit card usage is paying attention. I remember a few years ago when I noticed a charge on our credit card bill. I came to find out that I had signed up for something that would continue charging me every month until I cancelled. By reviewing my statement I was able to catch this discrepancy.

5. Always purchase electronics on your credit card.

One of the nice benefits of credit cards is that they offer certain purchase protections and warranties. You can review the terms and conditions on your card to see what benefits you have. If you pay with cash, you’ll lose out on this benefit that is included with your card. Remember, you should follow this in line with the other appropriate usage tips above.

6. Always maximize your credit card rewards.

If you are responsibly using credit cards as I’ve outlined above, you may as well be getting some credit card rewards out of your spending. This can be in the form of cash back rewards, travel rewards, or both. As an example, the Chase Sapphire Preferred card allows you to earn Ultimate Rewards points. Those points can be used to buy gift cards, purchase travel, or transfer to select frequent flyer mileage programs.

What guidelines do you use to help regulate your credit card spending?

This is a guest post by Craig Ford. At Help Me Travel Cheap Craig teaches people how to find the best travel credit card sign up bonuses so they can get free travel.

A recent article on Yahoo Finance referenced 7 credit card traps to watch out for.  It was a good article outlining a few of the traps out there with credit cards.

Personally, I find credit cards to be extremely helpful as a business owner, and in our personal finances, but that comes only after a toilet-cleaning campaign wiped out $10,000 of credit card debt and after much-needed self control was applied to my use of credit.

Credit cards can be a slippery slope, and I can assure you that if you want to become a millionaire, you’ll have to get the plastic under control quickly!

These first seven credit card traps are the ones referenced in the Yahoo article by Tal Boldo, and the last three are my additional traps to avoid.

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1. Application and Balance Transfers

Tal says, “There are two credit card traps to avoid here. Be sure to include your balance transfer request with your application, and be sure to transfer funds from a credit card in your name, rather than a spouse, as the loan officer reviewing your application will see that your debt-to-income ratio will remain unchanged, which will increase your chance of being approved.”

2. Fixed Promotional Rates

Tal makes a great point to understand the promo rate.  Sometimes the card company can pull one over on you without you even knowing it.  She says, “To avoid this credit card trap ask the customer service representative helping you with the balance transfer whether the fixed rate applies “for the life of the loan.” Otherwise, find out when the rate will expire and what the new rate will be.”

3. Variable APR Rates

Variable rates are the bane of any credit-card-debt-carrying consumer!  A simple nudge upward in the rate can send your payments skyrocketing.

Tal says, “This credit card trap can be avoided by applying for a credit card with a fixed APR, or balance transferring to a fixed APR promotional rate.”

4. Transaction Fees

Fees, fees, fees. It seems like every company has enacted a fee for something.  Tal says, “Most credit card companies that offer attractive balance transfer offers also often charge a transaction fee of between 3% to 5% of the total amount transferred. This fee is added to your total debt at the moment of transfer.”

The sneaky part used to be that the card company wouldn’t apply any future payments to your high rate existing debt, but rather to the new low interest rate balance transfer. What that meant was essentially that you were racking up interest charges at a rapid pace.

5. Membership Fee and Cash Back Bonuses

Tal says, “Avoid credit cards that require membership fees unless other services like life insurance, travel insurance or higher cash back bonuses make the membership fee worthwhile.”

I refuse to pay a membership fee for any card.  I don’t care how great the rewards are, it just doesn’t seem worthwhile to me.

6. Hidden Information

Tal mentions, “A common credit card trap involves the confusing presentation of information.”  Just like with the sneaky balance transfer payment method, there can be hidden tricks these cards are using to get you to keep spinning your wheels with your debt.

7. Pay Off High Interest Debt First

Tal says, “Until the Credit Card Accountability Responsibility and Disclosure Act of 2009, credit card companies would apply your monthly payments to your lower interest rate loans first. Many consumers are not aware that this is no longer the case. You can now make use of balance transfer promotional rates even if your credit card has a high interest balance on it already. When you send your monthly payments in they will apply to the higher interest balance.”

8. Extended Credit Limit

Card companies have tightened up with the credit limits since the 2008 meltdown.  This is still something to watch out for – where the card company extends your credit limit because of your great payment history.  If you don’t have the self-control to handle such a move, you’ll find yourself thinking you’ve just gotten a raise!

9. Minimum Monthly Payment

This might be the trickiest trap of them all!  Card companies love when you only pay the minimum payment.  And that amount looks so attractive doesn’t it? I mean, who wouldn’t want to just pay $50 on a large debt amount!? But, if you continue paying the minimum, it will oftentimes take decades to pay off your debt!

This is what suckered me when I first used credit cards in college. I ended up paying the monthly payments thinking I would just pay it all off when I earned more money. Two IRA withdrawals later, which resulted in IRS penalties and the wiping out of my savings, I learned my lesson.

10. Free “Checks” Received in the Mail

I remember the first few times I received these in the mail thinking I had just won some promotion or contest! I nearly cashed a check until I read the fine print. That’s when I realized they essentially counted the check as a cash advance (which naturally has higher interest rates), which results in your charges adding up faster than a Paris Hilton shopping spree!

Credit cards are not for everyone. You need to have the self-control and ability to pay the debt.  But, if you’re able, credit cards can be a great tool.  Either way you slice it, watch out for these 10 traps!  Card companies are just waiting for you to trip up!

What other credit card traps would you include?

This was a post originally posted on Christian PF. You can view it here.

It was already hot and sunny. 

Even though it was only 9 a.m., August summer mornings in the Chicagoland area can be quite muggy!

After breakfast with a buddy, I headed to the campus. I was excited for my first day of college.

I walked into the student center, and the halls were buzzing with excitement. 

Tables were lined up and down the main corridor with various campus groups, fraternities and even credit card companies vying for the attention of college freshmen.

That’s When I Saw It…

A T-shirt with a globe on it that read, “The World, In Your Hands“.  The table skirt proudly displayed the credit card company’s logo and a young man offered up a nice hello as I approached. 

“Sign up for a credit card today and walk away with this FREE t-shirt!”, he explained as I got closer.

“After you get approved, you’ll have your card in about a week or so.” 

“Sweet!”, I thought to myself – a credit card AND a FREE t-shirt!! 

The world really was in my hands!

Or, so I thought.

I was 18, naive and ready to prove to the world that I could handle anything – even a credit card.

But I Wasn’t Ready…

The next week I received my card in the mail and couldn’t wait to use it!  Although I don’t remember the first purchase exactly, I can only imagine it was a CD.  (Yes, this was before anything like an iPod or MP3 player came out!).

Over the next year, I spent money on food, clothes, music - just about anything and everything. 

I had a part-time job during college, so I figured I’d just pay it off in full the next month.

But I Didn’t Pay It Off…

The monthly statement came, and to my shock and horror, the balance was HUGE!! 

“How did that happen?”, I asked myself!  “This can’t be right!”.

I looked over the charges, and sure enough they were all on there.  What a waste.  I paid a little more than the minimum, and felt horrible.

So I curbed my use a bit.

But That Didn’t Last Long…

Soon, the temptation to spend and splurge was too great, and I gave in regularly, using my card for everyday purchases.

I started down a crazy cycle of spending, feeling horrible when I received the statement, and paying just a little more than the minimum payment.

And, of course, that created more and more debt!

Over the next couple years, I wiped out a mutual fund that I had saved into in order to pay off my card, but I went right back to spending and racking up more debt.

Although now, it was worse.  I had no mutual fund – and I had more debt.

I Needed to Change…

Over the course of the next several years I managed to rack up $10,000 worth of credit card debt, which included an engagement ring I bought for my girlfriend.

She was a master with money and had been saving for a while.  So, I brought my liabilities to the marriage and she brought all the assets.   Some would say that summarizes our marriage today – She’s the asset and I’m the liability!

Marriage, poor health, and a struggling business forced me to make some pretty big sacrifices and cut out all frivolous spending!

So We Came Up With a Plan…

My wife was very gracious about the debt and was willing to help knock this out.  We decided we would do whatever it took to pay off this ridiculous debt! 

We Got Part Time Work

We ended up getting part-time jobs cleaning two office buildings. 

My wife and I would go in after hours on a weekly basis to clean these buildings and earn some extra cash.

I ended up taking on the bathrooms and my wife would clean much of the open space. 

I hated those jobs. 

I don’t know of anyone who likes to clean their own bathroom, let alone bathrooms for other people!

But we sucked it up! 

We got dirty week after week and did what we had to do to pay down our credit card debt (or rather, MY credit card debt).

We Sold Our Junk

We started selling our old clothes, cell phones, and other junk on eBay.  I ended up making several thousand dollars from selling unwanted items that year.

It became a game for me to try to sell anything and everything on eBay!  I actually had family and friends asking me to sell items for them on there as well!  My best sale was an old pair of Air Jordan shoes that sold for $428!!

We Started a Side Business

My wife also took on a side business selling jewelry, which was lucrative enough to generate a couple thousand dollars!

We took almost every extra dollar we could find and put it toward our credit card debt.

Debt Free Within Two Years…

God blessed our efforts, and within two years we had all of our credit card debt paid off! 

I couldn’t wait to quit cleaning those bathrooms!

Since then, we have never carried a balance on our credit cards.

Here’s The Point…

• Debt is stupid!
• And really, Your money does not define you.
• But the main thing is  you must spend less than you make, and yes…
• You can erase your debt quickly, but…
• You must be willing to get a second job and do some dirty work, and also…
• Try hard to find ways to make extra money. And remember…
• Declare war on your debt and…
• Stay motivated!  It’s worth it!

This post was included in:

• The Carnival of Money Stories hosted by The Canadian Finance Blog.
• The Best of Money Carnival as Editor’s Choice hosted by ChristianPF

This post was chosen as the winner of the $1,000 Charitable Contribution for the Best Post of 2010 out of all Best of Money Carnival winners!

Excessive credit card debt is the bane of credit card users in America.

Revolving credit is easy to get, and tough to get out of.   Unfortunately, our credit card debt was well in excess of the average, and we needed credit card help.

It came to the point where the minimum was all we could pay each month and something had to change.

There were not many options that we could see, as a family that would not kill our credit rating.

So, my wife and I decided to do something positive toward paying off that debt which would have taken us 12 years to pay off (if we were lucky) making minimum payments and keep our credit rating decent.

A second mortgage on the house was not acceptable or even possible then because the wife was pregnant and not working.

We decided to cut back our expenses instead and see how big a chunk this would take off our debt. I can tell you now it has not been easy but we do see the light at the end of the tunnel and honestly, we had a lot of money going out to what we realize now, were non-essentials.

So how did we do this?

Step One for Credit Card Help – Use Cash

This was the hardest part; we cut up the credit cards. We knew that we could save all the money in the world but if we continued to pile up debt on the credit cards, well it was not going to be a winning situation for us.

Instead, we used all cash.  We used and still use our bankcard but unlike the credit cards, you cannot spend what you do not have in the bank.

Step Two for Credit Card Help – Cut the Non-Essentials

This too was something that was difficult. It is strange how much we have labeled as “essentials” that are not essential at all.

Though my wife loves to have her nails done (I am not sure why) we decided that perhaps that was something she could fore-go for a while or at least have those fake nails put on less frequently.

Coffee on the way to work was $25.00 a week for me and now, I bring a mug from home for the drive to work.

Lunch out at the local restaurant was at least $10.00 to $15.00 a day and over the month, I would spend around $200.00 a month eating at work.  My wife packs a tasty lunch now and our family saves $200.00 a month.

We did not eat out every night but pizza once a week and a night out at a nice restaurant was running us well over $250.00 a month. We cut eating out down to once a month and it has made an incredible difference.

Groceries were another place we changed things around to cut savings.

Prepared foods were costing us an amazing amount, but now dinnertime at our house we prepare our own salads rather than having them come out of a bag.

The wife makes real mashed potatoes rather than boxed. With just a few changes we are eating just as well but a lot healthier and saving around $150.00 a month on groceries.

Step Three for Credit Card Help – Stop Big Ticket Purchases, For Now

As most people once the new line of cars come out each year, we always started thinking about replacing our older car that normally was only one to two years old.

We have cut this out, though the newest and best model is nice, it is not living frugally. Instead, we plan to replace our three-year-old car next year when our debt should be about paid off.

It is easy to get in the habit of living in a disposable world, at least for us it was. It is harder to break that habit.

We have not redecorated in three years though before our decision to cut expenses the wife would totally redo the house and furniture each year.

To tell you the truth I do not miss the redecorating or the expenses that go with it at all. Adding a new patio and that holiday abroad, all those can wait, they will still be there when we are debt free and we will be a lot more able to enjoy them.

Step Four for Credit Card Help – Consider Your Options and Choose a Plan

Although we had cut our budget a lot and had more free cash to use towards our credit card debt relief goal it wasn’t going as quickly as we hoped. So, my wife and I sat down and did some calculations as to whether we should try a balance transfer.

Here was the math for us, though it could be different for everyone.

Balance transfers were available to us because we had stepped in quickly before our credit rating sank too far.

However because our debt was such that we could not pay if off in the 6 to 9 months allotted for a no interest rate offer, and the transfer fee simply added to the amount borrowed we decided to stay where we were.

This could vary with everyone but we decided to keep paying on our moderate interest credit card and not incur any further fees.

What works for one family might not for another, but spending more on anything is never a good idea if you want to live frugally with excessive credit card debt.

Sometimes the best step in living with a high revolving credit debt is to stick it out if we could have seen a quick payoff from the transfer we might have taken that step but, it wasn’t for us.

I cannot say this will work for everyone but with modification, it can certainly help cut down the pile of credit card debt anyone has accumulated.

It is more a matter of deciding what is essential to your quality of life and what things are really luxuries you can do without to have a better life. Now, she and I see the end to our debt and plan never to get that deeply in debt again.

Mirsad writes for Think Credit Cards, a consumer oriented site where you will learn how to pick a credit card that suits your needs.

Filing for bankrupcty can sometimesbe the best bet for someone with unpayable credit card balances.

A credit card bankruptcy can lower monthly expenses, stop interest from accruing, and give you time to restructure your debt without fear of legal repercussions. The credit card bankruptcy process can give financial relief, but does come at the expense of your credit and your assets.

When you file for bankruptcy your credit will be affected for a span of 7 to 10 years. This might make it more difficult to borrow money, rent a home, or even get a job.

You may lose certain assets to your creditors, but if you are facing credit card debt that is no longer manageable, it still might be the best move.

A few years ago it was much easier to eliminate credit card debt through a chapter 7 bankruptcy. But in 2005, the Bankruptcy Abuse Prevention Act was passed and made it more difficult to charge off credit card debt and other unsecured debts.

Chapter 7 can be a good option for someone with minimal assets to protect from a liquidation (i.e. home, car). It can give debtors a fresh start, but will still leave a big ding on their credit reports. After a chapter 7 filing, a debtor’s assets are liquidated by a judge and the proceeds are divided among the creditors.

Side Note from Jason: If you’re a Christian and struggling with the idea of bankruptcy, you should check out this post on Christian Bankruptcy.

After the assets are sold and the proceeds doled out, a debtor would be completely debt free. But since the 2005 law, any monthly income that exceeds $100/mo. will disqualify a debtor from filing Chapter 7.

The courts will conduct a “means test” to determine what your expendable monthly income is. If you have over $100 or more in extra income per month, you would not be able to completely discharge your debts through chapter 7 and would only be able to set up a repayment program through chapter 13.

Can a credit card company stop my bankruptcy?

When a bankruptcy goes to court, a credit card company may try and stop the discharge of debt by filing an “adversary proceeding”. Usually this is due to instances of fraud.

The company might claim that a debtor applied for a card with false info or that they made charges without any intent of repayment.

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If a person made a large amount of charges after they sought help from a Bankruptcy Attorney, or there was an indication that the they made charges with the intent to dismiss them in court, your judge might consider the creditors side.

But, once the bankruptcy is finalized, you may not be sued over these debts.

Can Chapter 13 bankruptcy help with credit card debt?

With chapter 13 bankruptcy (AKA: wage earner’s bankruptcy) you are allowed to keep certain assets (house, car, etc.), while making a reduced payment to your creditors.

This type of proceeding allows people with an income (of $100/mo or more), to create a repayment plan over a typical period of 3-5 years.

A Chapter 13 filing can stop foreclosure for a period of time and can allow the debtor to catch up on delinquent mortgage payments.

Another important thing about chapter 13, with regard to credit card debt, is that interest will stop accruing. The interest on your credit card balances will come to a halt and you can begin to repay the outstanding debt.

This means that there are no more balance increases after you file for bankruptcy. Sometimes dealing with this debt through bankruptcy can be easier than with non-consumer friendly terms on many of these cards.

Once you have a repayment plan in place, a trustee is appointed by the courts to make payments to these creditors on your behalf. All of the creditors are paid by the trustee out of one single monthly payment made by the debtor.

Is bankruptcy expensive?

The court filing of the chapter 7 and chapter 13 paperwork costs around $300, but this does not include the price of a lawyer.

Internet consensus puts the entire package of a bankruptcy (legal help included) at at around $1000-$3000, but the price will vary depending on your lawyer and type bankruptcy you are filing.

You may be able to get a slight break, if you can negotiate installments to pay your legal fees. But if you are able to get rid of alot of debt, that bankruptcy can pay for itself.

Counseling before bankruptcy

The 2005 Bankruptcy laws also state that any individual seeking bankruptcy, must receive mandatory credit counseling. This applies to both chapter 7 and chapter 13.

This counseling must be sought through a government approved company within the 6 month period before the filing. The debtor must also complete debt education classes in order to have their debts dismissed.

Usually these courses can be very beneficial and help debtors understand the ins and outs of the bankruptcy process before they file.

This is important because these are complex financial actions and can seriously affect the filees future. The more knowledge you can gain about this process, the more prepared you will be.

This is a guest post by Garrett Driscoll from Debt Eagle. Visit his site if you are having credit card debt problems, need advice on settling, or are considering bankruptcy.

Note from Jason: Bankruptcy has grown in popularity in recent times.  In my opinion, you should never rush into bankruptcy and it should almost always be a last resort after careful and prayerful consideration.  A heartcheck regarding your motivations for bankruptcy is wise also.  Everyone’s situation is different, so make sure you take a full inventory of your options before a bankruptcy is considered.  Check out this Credit Card Payoff Calculator to give you an idea of how long it will take to pay off your debt.

It is an epic battle, one waged since the dawn of time…well not quite that long, but the battle between credit card rewards and credit card debt is one which polarizes people the world over.

But today we end it with a duel – en guard!

The Strengths of Knight Reward

Knight Reward is often accused of being an underhanded competitor – offering the possibility of the carrot, only to beat you with his stick.

Well you can avoid being beaten and get a hold of the prized carrot if you know how to play to the strengths of credit card rewards.

How to use a credit card for the rewards:

A rewards credit card must be used with a high interest savings account fighting alongside.

Knight Rewards’ most famous battle cry is the fact that credit cards can be used throughout the month, during their interest free days, for all purchases while your salary is in a high interest savings account accruing interest, or is in an offset account linked to your home loan, offsetting the interest you will have to pay on your mortgage in the month.

To be given the chance to win, your credit card must be allowed to fight, and to combat the high annual fees which often come with rewards credit cards, you will need to be spending at least $2,000 each month on your credit card before you consider going in to battle alongside Knight Rewards, to accumulate enough points to make you eligible for rewards which will compensate you for these fees.

You must always clean your sword before returning it to its sheath.

If you fail to pay your rewards credit card balance back to zero before the end of the interest free period, even the fearless Knight Rewards won’t be able to save you – you’ll be ensconced in interest and monthly repayments which will override the value of any rewards you may earn.

However, using a credit card and paying it down to zero each month gives you a strong credit report and shows your financial responsibility.

Choose a rewards credit card which actually allows you to earn rewards.

Some rewards credit cards are drawing you into a battle you’re bound to lose with unrealistic terms, conditions and usage periods for your rewards points.

However, there are many credit cards which will offer you the chance to choose gift vouchers or fuel vouchers with the points you have built up in your spending and some gold cards will also allow you to earn two points for every one dollar you spend.

Know the rules of the credit card battle.

If your rewards points do expire, make sure you can easily keep track of them and cash them in for rewards before you lose them. Also make sure that the rewards you can earn are ones you actually want, and that you are given choices between charity donations or cookbooks, movie tickets or a hair straightener.

A savvy purchaser can deftly avoid interchange fees. Some rewards credit cards will attract a higher interchange fee, but most Australian retailers will advise you of this additional fee before processing the purchase – therefore, look for a credit card with a companion card which attracts lower interchange fees.

For example, take a Mastercard or Visa into battle with a companion American Express card, AmEx can earn you higher rewards, while fighting in a tag team with Mastercard or Visa to avoid high interchange fees. An informed credit card user also knows interchange fees are just one of the many costs of doing business.

He’s put up a good fight, but is it enough to allow Knight Rewards to maintain his dominance on the credit card battlefield?

The Strengths of Challenger Avoid

Challenger Avoid is a somewhat meek competitor – taking the road of least resistance in the battle and in risking nothing, he attracts no ire.

Challenger Avoid knows his weaknesses and if you’ve identified similar weaknesses then you may choose to fight alongside the stoic warrior Avoid.

Avoiding credit card battles:

The cost of not-so-innocent interchange fees is just too high.

Avoid is proud to fight the good fight on behalf of all consumers and holds strong to his belief that interchange fees which merchants are charged to accept credit cards are a cost passed onto all buyers, regardless of their payment method.

Challenger Avoid will avoid credit card use to save himself from the costs of interchange fees, while hoping the decreased use of credit cards will decrease the cost of interchange fees to businesses, and in turn customers.

The battle of the credit cards preys on the weak.

Challenger Avoid chooses not to fall victim to the seemingly enticing deals which he believes are only a clever disguise to get him deeper into debt, in turn earning the credit card companies more interest.

Challenger Avoid knows the credit card companies don’t ever want him to pay off his balance, and chooses not to spend an eternity being encouraged to spend.

Know Your Credit Card Habits

Knowing your spending habits helps you responsibly avoid bad debt. If you have faced past battles with credit card debt and lost, or you don’t want to tempt yourself to spend money which is not yours, Avoid encourages you to not show your weakness to the credit card companies.

If you don’t think you can pay off your credit card to zero each month, or only use it for essential purchases, then the best way to ensure you stay debt free is to avoid the temptation to use credit.

A doppelganger debit card can give you the same convenience as credit. If you have chosen to avoid credit card use, you don’t have to forge the ease and security of paying with plastic.

You can instead employ a decoy – a debit card which looks and acts just like a credit card, but which links to your transaction account and allows you to only spend your own money.

Debit cards offer you the security to pay for bills over the phone or make online purchases and can even offer rewards of their own – Visa Debit cards for example give you first access to concert ticket releases and discounts on audio entertainment equipment.

A worthy opponent, who has now earned himself an equal rank beside Knight Rewards, but has Knight Avoid been able to topple his historic foe?

The battle has been fought and won, with each side offering a mighty show of strength and determination for their cause, with the duel making champions of both competitors.

How About You?

The duel between Knight Rewards and Knight Avoid will go down in history, so which side will you be fighting on in the future?

Fred Schebesta write for Credit Card Finder and Savings Account Finder, where he helps people to compare savings accounts and credit cards

Many times the simple things have a way of sticking with us and helping change our patterns of behavior better than a list of 25 items we need to remember to do on a regular basis. 

If you’re struggling with credit card problems and stopping the use of your credit cards - you could set fire to them, but I hate the smell of  buring plastic don’t you? 

Instead, try to focus on changing just one or two things.  Once you master those then you can move on to the next steps. 

I recently read an article from TheStreet.Com called 5 Ways to Dig Yourself Out of Credit Card Debt.  This post is adapted from that article. 

It will be especially important with Black Friday approaching that you have a plan in place to help with your credit cards. 

Here are three simple things you can do to help avoid credit card problems and curb your credit card usage:

1. Delete your cookies

Wait! What? Yes you read that right.  But how does that help? 

Cookies are simply a way your computer remembers information about you to make your internet browsing easier and quicker. 

One thing that your computer stores is your credit card account numbers and information. 

Think how easy is it to jump on a site like Amazon.com, shop for that new book, video game or software you’ve been dying to buy and with a couple clicks of a mouse have the item shipped to your house.

Most people aren’t big dorks like me and have their credit card number memorized  - so by deleting your cookies you at least have to take a few minutes to go dig your credit card out of your wallet and type in the information.

Doing this will probably get old after a while and hopefully will be enough to at least make you pause and think, “Do I really need this?” 

2. Apply the $25 rule

This rule simply says you CANNOT add more than $25 (or $50 or $15 or whatever you amount you decide) to a purchase you were originally going to make.

In other words, say you go to the mall for a new pair of pants, but you notice that sweater you’ve been eyeing for a while is on sale for $29.99.  You need to say, “Sorry sweater, you’re not coming home with me!”  Don’t act like you don’t talk to your clothes!

You should set your target spending amounts BEFORE you go to the store.

Another version of this would be to say you cannot add X amount to your card at any one time – where X is whatever amount you decide ($25, $50, $75 etc.)  This helps avoid those big ticket items that are easy to say to yourself, “Oh, I’ll just pay it off later!”

3. Play the Three Reasons game

This can be one of those games that annoy you to the point of not purchasing the item. 

Basically you need to name three reasons why you should buy that particular item with a credit card.    (Don’t cheat: ”Because I don’t have cash on me” is not an answer!).

If you have trouble with cards don’t fool yourself into thinking that getting your cards rewards points is an answer either.

If you can come up with three solid reasons why you should buy with your credit card then go for it.  What you’ll find is that many times it just doesn’t make sense. 

Try these simple rules this holiday season and see what happens with your credit card usage.  What other simple tricks do you use to help curb your credit card use?

Other posts on credit cards you might like:

• How to Save (Potentially) Thousands by Spending $3.99
• 9 Habits of the Debt-Free Credit Card User
• 5 Mistakes People Make with Their Credit Cards