Credit cards are very convenient, and, most often, have very attractive offers. They are indeed a great financial tool when used correctly. On the other hand, credit card debt and all other problems are not going to be far behind in case of mismanagement or wrong usage of a credit card. To keep your credit card and yourself out of trouble, follow these basic rules:

1. Use your card as a convenience and not a loan
A credit card should be used with the mindset of making bigger purchases or spends without the hassle of actually carrying cash around. You still have to think hard and only spend or buy what you can afford. If you use the card to make payments far beyond what you can afford, you are, in effect, taking a loan at high-interest rates, and it does not make financial sense. You might as well just get a loan from a financial institution for that specific purpose at better interest rates. If you are not going to be eligible for that loan, you are most likely spending on something that you cannot afford.

2. Save for a rainy day
Your emergency fund should be an actual fund. When you rely on a credit card to cover unplanned and emergency expenses, it is naturally going to get you into unaffordable credit card debt. Saving for emergencies in whatever way, be it big or small, will always pay off.

3. Quick repayment
When you plan on using your card for a larger expense, also plan in such a way that you can repay the balance in not more than six months. This gives you a reasonable time to pay the amount without the interest rates compounding and leaving you with a huge amount outstanding.

4. Budget
Set a budget and stick to it. If you have not budgeted for that shiny new toy that you are tempted to swipe your credit card, do not buy it. This is regardless of how attractive the price or how cheap the bargain is. The interest, fees, and penalties that you will need to bear later will negate any advantage that you might have perceived in buying it.

5. Cash advances are a big no-no
If you are taking cash out of your credit card, you are heading for trouble. You would be drawing that cash from your bank account and not a card if you were in a financially safe position. Think twice before you fall for this trap that leads straight to credit card debt.

6. Less is more
If you need the convenience of a credit card, have just one. The more cards you have, the more access you have to a means of getting deeper and deeper into credit card debt. Limit yourself, and do not rely on your self-control to prevent using all the cards. Use that self-control to limit the number of cards instead.

7. Know your card
You may not be so happy with your credit card once you really understand the fine print, the interest rates, and charges, but it is extremely important to read the fine print.