Many people pretend that they manage their credit cards well by saying things like:  

I always pay off the credit card at the end of the month.

I never pay interest.

My credit card provides me with great stuff via rewards points.

Only use your credit card if you can pay it off each month after having paid all debts (according to your debt reduction plan) and after you have made reasonable contributions to your automatic investment plan.

Many people are spending on their credit card what should be saved, and often the spending is on impulse buys that is regretted when the credit card statement arrives in the mail.

Different ways to use a credit card properly!

Have a very low limit of say $500.

Only ever pay off the interest, therefore ensuring you can never use the damn thing. This may appear to contradict what we at money100 are trying to achieve however it does have some merit. If you have a real problem with credit card usage this may work and is a short term solution only! When out shopping and the balance owing is at your credit limit then with most major outlets you won't be able to spend! The transaction will be declined at the checkout. At smaller outlets with manual merchant credit card systems this system won't work nor will it work at larger outlets when the EFTPOS is off line.

The above option can be used to reduce your credit card limit. When you make a payment off the principle have your financial institution reduce the limit by the same amount.

Cut it up, repay it and tell the Bank to close it.

Put the card in water in a metal container in the freezer. (Can't be put in microwave!)

Have firm control of your expenses.

Don't use the credit card at all.

Do you get the hint !

Credit cards work for  financial institutions and their shareholders, they get richer by keeping you poor !