Are credit cards evil?

In this day and age when most people can get their hands on credit easily; usually in the form of credit cards - is it too easy for youngsters to get caught in the credit trap?

A relative of mine recently out of high school, quickly got his hands on a personal credit card and combined with some huge cell phone bills -he was soon in the red to the tune of over $5000.

The flipside of this danger; is that these days most of us need access to credit cards for not only things like cell phone payments remotely; but for on-line purchases and other distance purchases. The other advantage is access to some of the decent rewards programs around; smart, managed spending on credit cards has the advantage of cheaper flights, free meals and gifts by accruing points - something that cash can't give you!

I think the best way to keep a lid on things, while still having access to the benefits of credit cards is to have the spending cap as low as possible. Maybe get a friend or relative to help you choose a smart level of credit and ensure its capped? (That stops you from being too tempted to raise it too much).

The other key is to compare credit cards; and pick the best available option. Not only the best rewards program; but a credit card with the lowest interest rate, 0% credit cards or transfer based interest rate reductions are ideal and the longest interest free period. With so many cards available; check on-line for reviews and other advice from trusted sources.