Copyright (c) 2010 Liz Roberts

The fact that millions of consumers all over the world are still facing serious debt problems should make each one of us become more aware of our own spending habits. If you own a credit card or two, you should be particularly extra careful in how and where you use the cards you own. Have you paid attention on how you used your credit cards last holiday season?

According to Michelle Jun, Staff Attorney for Consumers Union, "Too many credit cards are designed to get you in debt and keep you there". Surveys conducted by the Consumers Union show that credit card holders are at risk of getting stuck in debts because of soaring interest rates and penalty fees of credit cards. Below is a list of unwanted elements that you should be aware of when owning a credit card:

Changes in terms. Read your credit card terms and conditions. Somewhere in the middle or in the end of your contract, you may find a disclosure stating that your card issuer has the "right to change terms at any time" they wish. This means, your fixed interest rate can suddenly change into an adjustable-rate or your low annual fee can unexpectedly increase after you've signed up for the credit card.

Incredibly low introductory rates. Cards with cheaper interest rates are very enticing indeed. However, you must never forget that this is just an introductory offer. How much would be the interest when the introductory period ends? You may be surprised to find that the rates have ballooned three or five times more than the original rate you signed up for.

Cash advance rates. Be careful about using your card for getting cash advances as this can cost you more with its high rates that are charged to your account right after you took out the card. Avoid using your card for cash advances.

Unreasonable penalty fees. Credit cards often impose penalty charges on late payments and exceeding credit limit but don't settle for a credit card with unreasonably high penalty fees. even if your goal is to always pay your bills on time, there are still instances wherein you miss a single payment which can get you out of balance.

High annual fees. Your credit card may come with an attractively low interest offer, but have you checked on the annual fee? Some credit cards will charge you as high as $75 to $100 fee that you have to pay each year to activate your card. This particularly applies to credit cards with reward programs. Don't be lured by the rewards being offered right away. Consider how much annual fee you need to pay just to get qualified to earn your rewards.

High interest rates. Just because a credit card offers 0% APR on balance transfers doesn't mean you should immediately apply for the card and move all your balances. How much interest rate does the credit card impose on purchases? You may be paying off the balances you transferred minus the interest but you may be incurring more interest every time you use the card for purchasing.