We can all agree that credit cards offer us many advantages. With a credit card you can buy an variety of things including groceries, gas and outstanding bills. The credit card can be used like a debit card, but the difference is that you actually pay a creditor for your items later and sometimes with interest added to the tax or shipping and handling costs passed on to you as a result of your purchase.

It’s wonderful a feeling when you can answer the cashier’s question, “Cash, check or credit” with a flip of your wrist and the beautifully decorated plastic card between your first two fingers as you hand it to the cashier as payment for your purchase. Despite the fact that credit cards are a convenience and make paying for items easier they can also create problems if the card holder is not careful.

Creditors like surprising their card owners with changes that are sometimes buried in the fine print or in the junk mail we toss. If not careful, consumers may end up paying high finance and interest charges that could affect how you pay back your creditor for purchases especially if you maintain an outstanding balance. However, it is possible to avoid debt if you adhere to these five credit card tips.

1. Be alert for changes to your credit terms. Sometimes banks will increase your interest rate and you won’t know it until your next billing cycle. Read everything your credit card company sends you in the mail. If you catch the change in terms, you can disagree with it and keep your current interest rate. However, you may stand the chance of losing the card, but you will still be held responsible for the balance.

2. When your credit card statement arrives make sure you compare your receipts with the statement. If you have an unauthorized charge on your statement make sure you challenge it immediately with a phone call and with a follow-up email and letter.

3. Do not loan your credit card out to family members and friends. Although they may have the best intentions of paying you back, you cannot afford to depend on them especially if you can’t make the payment yourself. So keep your credit card away from friends, families and of course safeguard your credit card from strangers.

4. Be careful with owing your credit card company more than you can repay. Credit lines are being decreased, balance transfer fees are increasing and limits are being placed on variable rate cards. If you get stuck in a bind and not able to pay because of the changes creditors are making to your account, it may force you into debt which in turn will affect your credit rating. Be mindful that a credit card is a loan which is imperative that it be paid back.

5. Be mindful of balance transfer teaser interest rates. Some banks will coax you over with a teaser rate, but once you receive your statement you have been charged interest on the balance transferred. Always keep your offer or make a copy of it so you can refer back to it if need be for clarification. Because if you’re depending on an interest free payment, and it doesn’t happen you will need to be prepared to make the payments with interest.

Currently, the economic crises has driven some card holders to use their credit cards to help them survive financially. It’s understandable, but is not a good practice. Creditors are forever thinking of ways to leverage their financial interests which may cause a strain on you financially if you are do not approach increasing your debt with caution.