Cut Up Your Credit Cards

We all know credit cards are the enemy, giving you the opportunity to spend money you don't have. However, having the ability to charge things instead of paying in cash is highly useful and in some cases (checking into a hotel, for example) a necessity. Using a debit card, which can be used like a credit card but forces you only to spend the money you have in your bank account, allows you to do pretty much anything that a credit card except putting yourself into even more debt!

Pitfalls to Avoid with Credit Cards
1. Using Credit Card Checks
Those little convenience checks that come with your credit card statement can be a trap, if you don't read the fine print.  Often they offer a 0% rate or some other alluring gimmick to grab your attention.  Sometimes, taking a balance by cashing one of these checks could cost you an initial fee of 3.5%.  So, even the first payout isn't free.  Then, if you continue making purchases on your card, the 0% rate doesn't apply and you start building up a high interest balance on top of the cheap rate.  Just keep in mind, it's not free money and they wouldn't offer it to you if it didn't make them a profit.

2.  Missing Payment Due Dates
Credit card companies love it when you miss the payment due date. Why? Because it gives them an excuse to raise your APR and charge you fees.  Remember those balance transfer checks with the 0% APR. When you miss your payment due date, they can jack up your rates because you have nullified the original contract.  Then, they'll charge you a late fee as well.

3. Craving Credit Card Rewards 
Don't ever use a card with the mindset that you are rewarding yourself with points or cash back. You are spending money, not saving it. Marketing programs are geared towards unlocking the vault inside your wallet.  They've studied human behavior and found a way to make you feel something positive when you should feel something negative.