A credit card is like a double edged sword. It sure is desirable, especially when you want to make purchases online, reserve plane tickets, confirm hotel reservations over the phone or simply happen to be a little short on cash to make a purchase. However, It is a convenience which can also lead to big problems if you are not careful and discerning in your spending habits with the credit card. A credit card is like a weapon that has to be used intelligently and responsibly. To avoid getting into trouble over your credit card, here are a few simple tips that can really help:

1. When you buy something with your credit card, always be aware that you are actually borrowing money. Never borrow more than your ability to pay it back.

2. Always be aware of your outstanding credit card balances. This will help you determine whether you can make additional purchases. Even small purchases can really add up to big balances and substantial interest charges.

3. Retain all receipts at least untill you can compare them to the credit card monthly statement. If some purchases do not match or if some charges are higher than those on the receipt, immediately contact your credit card company.

4. Never give out your credit card to anyone! This includes people in your family and any of your friends. It is not that you cannot trust these individuals, but you cannot track purchases you are not even making.

5. Never charge more than you can repay. When you do, you can hurt your future chances of getting any kind of credit, including car loans, home mortgages and other forms of loans.

6. Aim to pay all your bills on time. When you do that, you will avoid heavy finance charges and accruing interest. Add these to your missed payment, and the balance continues to grow.

7. Try to have your credit card bills paid in full every month. To ensure this, budget your credit card purchases on a monthly basis and then don't allow your purchases to exceed that amount.