Finances and debt are important issues lately, what with the economy hitting the skids and now the holiday spending season fast approaching. Credit cards are a convenient means of carrying and spending money, but if you’re not careful and don’t use them wisely they can also be your total financial undoing. Here are a few things you should never do with your credit cards:

NEVER make only the minimum payments

The minimum payments are calculated by the credit card companies and are not designed to help you pay off the debt, but instead to earn them maximum interest. Pay as much as you can every billing cycle, but really you shouldn’t charge more on the card than you can afford to pay off within the no interest grace period (usually 30 days).

NEVER own more than two cards

Why do you need a wallet full of credit cards? You don’t. No matter what your excuses are for having so many, all they really do is put you at risk for overcharging and racking up mounds of debt. Trim your credit arsenal down to just one (or two, if you must) well known national cards and get rid of the rest (department store cards included!).

NEVER miss a payment deadline

Your credit card company is just waiting for you to make a late payment because then they can raise your interest rates and make more money. It only takes one late payment to shoot the interest rates sky high, and once they’re up there it’s all but impossible to get them back down again.

NEVER take cash advances

A total no-brainer because cash advances from credit cards come with ridiculous service fees and are usually subject to different, much higher interest rates than regular purchases. Plus, since most cards apply payments to the lowest interest balances first, that one-time cash advance could sit on your card accruing interest for months and even YEARS while you work to pay everything else off first.

(Photo courtesy of Andres Rueda on Flickr)