It’s a fact of life in today’s day and age, everyone has a credit card. Sadly, most individuals don’t understand the importance of using a credit card wisely and end up abusing their cards — racking up serious debt as a result.

So what is the best way to use a credit card? My personal rule of thumb is I don’t put a purchase on my card, if I know that I won’t be able to pay it off at the end of the month. Staying disciplined isn’t always easy, but once you understand the true expense of credit card debt that is carried over from one month to the next, it becomes easier.

When used wisely, credit cards can be an excellent tool. Not only are they convenient, they also allow provide added “perks” such as rewards, frequent flyer miles, etc. — just remember not to abuse them.