While getting into debt is never a good idea, having a credit card can be extremely useful. If you manage your cards correctly then there is no reason why having one should cause you any problems. However, there are several risks you need to be aware of in order to use your card effectively.

The biggest risk when it comes to credit cards is being fooled by the interest rates. Some people take out credit cards - which are often surprisingly easy to get - without thinking about the interest rate on the card.

Whatever you spent on the card you obviously have to pay back. However, you will not just be paying back the amount you've used, you'll also have to pay back the interest accrued.

Some cards have extremely high rates, in some cases around 30%. This means that whatever the purchase price of the item you buy you'll pay 30% of it again on top.

What's more, this means when you are paying back the credit card with monthly repayment, a lot of the time you are only really paying off the interest and not really making any sort of dent in the debt you owe.

This is particularly true if you only manage to make the minimum payment each month. This tends to just cover the interest. If you want to make some headway into paying off the debt itself, you should try pay more than the minimum payment each month.

You should be particularly careful about rates if you are taking out a credit card specifically designed for people with bad credit ratings. These cards enable people who would struggle to get credit because of past problems to take out cards.

However, because of the risk involved, the rates are higher than on traditional credit cards. If you don't think you can manage to repay the debt you should not take out a card.

You should also be careful if you use balance transfer cards. Most companies offer the option of 0% interest on balance transfers. This means you can move what you owe on one card to another and not pay any interest on the balance, giving you a chance to clear the debt.

However the 0% interest can only apply to the balance transfer and not on new purchases. Any new purchases you make will be subject to the cards standard interest rate.

What's more, any repayments you then make will be used to pay for the new purchases and the interest on them rather than the original balance.

If you are aware of the risks involved and you are careful not to fall into any traps, a credit card can be a great way to manage your finances and purchase expensive items such as furniture or holidays with the ability to pay for them over a period of time.

To find the best credit cards around go online and search price comparison websites. These will inform you of the most suitable credit card for you with the best rates.