The only realistic solution is to charge only what you can pay off quickly. The next best choice is to pay as much more over minimum payment due as you can afford. Or consolidate your credit card debt into a lower interest loan or line of credit, but only if you destroy all your cards and never apply for new ones.

Many people made a habit of maxing out their cards and then going bankrupt. Their credit card debt would be wiped out in bankruptcy court and they would get a "fresh start". In March 2005, US Congress drastically changed bankruptcy code, limiting access by individuals to Chapter 7 of code, which was section of law that sharply limited repayment of debt.

Credit card companies now check your credit report frequently, sometimes every month. Even if you are never late in your payments to them, they may decide you are no longer a prime customer and may raise your rate.

Some of things banks are looking at is your use of your overall debt – if your ratio gets too high they get scared. Another event that may trigger a rate increase is a late payment to another credit card company or even to phone or electric company.

Being even one day late with a payment to any creditor may trigger up to a four times increase in your interest rate. If you’re using one of free or very low interest offers banks use to lure you to them, they will likely hike your rate as high as 29%.

So, one final note about credit cards: do not ignore little messages banks send you either in your statement or separately. They may contain nasty surprises, like an increase in your interest rate that you can avoid by simply writing credit card company and no longer using their card. I personally got one of those love notes, trying to raise my interest rate from about 14% to almost 24%. Needless to say, that card went into garbage.

Now more than ever, you must learn to use credit responsibly. The quick escape of bankruptcy will be harder to come by and it is just too costly over long term to ruin your credit rating at any point in your life.

A bad credit score not only affects interest rate you will pay on credit cards, personal loans and mortgages, but also may affect your ability to get a job, rent an apartment or result in an increase in your auto insurance premiums.

So take those little pieces of plastic seriously and handle them wisely.