Owning a credit card is a great convenience in this day and age. Aside from being able to make instant purchases, a good credit history will allow you to purchase a car or apply for a housing loan. But the sad reality is, more and more people are falling into a bucket of debt far more than what they can pay for. And as the debts pile up, the interest rate does too, which may leave you paying more for the interest than what you have bargained for.

The stress that comes with the knowledge of having a huge credit card balance can be enormous. But these missteps certainly are preventable with a little knowledge and good financial management. Here are some tips to help you start taking action and help you get back in control of your finances.

• Choose the card with the lowest interest rate. Just because “pre-approved” credit card offers are pouring in the mail, doesn't mean that these are the right choices for you. Read and compare the credit card fine print and look for hidden charges which may leave you paying for more than what you expected. If you already own a number of credit cards, try shifting your expenses to the one that offers the lowest interest rate.

• Pay in cash for frequent small purchases. When you are not planning to purchase anything big, practice leaving your card at home and bring some cash instead. This will limit your spending and prevent unnecessary purchases.

• Start building a good credit history. As early as the first month of acquiring your credit card, start being a responsible user by keeping your balance below the credit limit, pay in full and pay your debt on time each month. Being a responsible card user not only eliminates unwanted interest rates but also, having a good credit history will be very useful in the future when planning to apply for car and housing loans.

• Practice good credit card habits. When planning on a big purchase, ask yourself first if you will be able to pay it in full by the end of the month. If you can't possibly afford it, stop yourself. Paying only for the minimum allowance each month will soon leave you with an interest rate far larger than your original purchase.

• Stop your card company from increasing your credit limit. Being a responsible credit user, credit card companies may increase your credit limit which in turn allows for a larger debt to accumulate. Inform them that you do not want it increased at this time.

• Stick to a budget plan. Good financial management skills will give you an idea of the way you spend your money, keep track of unnecessary expenses and help you budget an amount to pay off each month's debt. By trial and error, you will soon be able to device a plan which works to optimize your finances, stick within the budget and avoid falling into debt.