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If someone stole more than $2,500 from you, you would be irate. You would file a report and pursue every possible lead until your money was returned to you. What if I told you that someone was in your wallet right now and that they were going to make off with thousands of dollars worth of your hard earned money? You’d pay attention, wouldn’t you? Well there is someone in your wallet; there may even be multiple people in your wallet. For every credit card that you have, you will waste thousands of dollars in interest.

The numbers associated with credit card debt are staggering. A card with an APR of 19% will take 25 ½ years to pay off if there is a $2,000 balance owed and no more purchases are made. This is assuming, of course, that only the minimum payment is made each month. Such a payment plan will cost the card holder more than $2,600 in interest. If you have a credit card or multiple cards, you are losing at least this much in interest. You may be losing even more.

You see, the numbers above only apply if the card is no longer in use. If you have a credit card with a $2,000 revolving credit limit and you purchase something every time that you have available credit, you will never get out of debt. The interest charges associated with such activity could be extreme. And that’s only considering one credit card. If you have several cards, you could be wasting more money than you ever thought possible.

Using the scenario above, let’s suppose that you bought a $2,000 plasma TV using a credit card. When all is said and done and you’ve made all of the payments, you could have had two plasma TVs or you could have taken a really nice family vacation. Throwing away money on interest charges is like throwing out your hard-earned dollars out with the trash.

Now, let’s talk about smart credit card use. Following are rules that you should always follow when using credit cards:

* Never carry a balance that exceeds 25% of your credit limit. Credit card debt that exceeds 25% harms your credit score.

* Always pay your bill on time. Late charges are astronomical.

* Do not use your credit card to finance your life. Only make purchases that you can pay off within a month or two.

* Do not drive your balance up with back to back purchases.

* Always pay 2 times the amount of your minimum payment.

Credit card debt is at the forefront of what is making people financially sick. If possible, avoid credit cards altogether. If you have to use credit cards, use them wisely. They are tools; they are not a way of life.

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