In today's world, credit cards are all too commonly used for frivolous expenses. They have become an integral part of our daily lives. Their use is so ingrained into our lives that they are very nearly impossible to put down.

Whether you are shopping, going out to eat, traveling or any number of other uses, credit cards are with us in a seemingly permanent love/hate relationship. You can use credit cards for the purchase of almost anything.

And at least on the surface, there are no compelling reasons for us to stop using them. They're easy and relatively safe. They even offer extra perks to use, so why not?

Credit cards today practically replace cash and are oftenreferred to as "plastic money" just for that reason. They're perceived as being better than cash since you can buy the things you want or need without ever having the actual money for them on hand. You can live your dream for a brief moment, but the dream can eventually become an expensive nightmare over time.

Despite the illusion otherwise, credit cards are not free money. They may seem like it sometimes and may even allow you to have fun for the time being, but the fact remains that the bills eventually show up. If you can't repay when the bills come due, then your credit suffers and you must find strategies to reduce your debt.

There are helpful tools, but only if you use them with due respect.

Credits cards are, in effect, interest loans issued by banks and credit companies to earn profit from interest rates you pay. Be aware of the hidden costs in dealing with and using credit cards:

Annual Membership Fee

Some credit cards require a fee in order to obtain and to use them. The credit card company will automatically take the fee out of the card each year.

Interest Rate

This is the amount as a percentage that is charged monthly to you for any outstanding debt owed on the card.

Late Payment Fee

You have a minimum payment due each month. If you don't make it, this is the fee that is charged to you. Most minimum payments are around $20 to $30; however, the late payment fee can be as high as $50.

Other Fees

There are a host of reasons we wind up with credit card related problems. Be well-informed regarding all fees associated with your card. For example, today there is a practice with "bad credit" issued credit cards.

In this scenario, you opt for a credit card with a very low credit available to you, typically around $250 to $500. You will then be charged an annual fee, a participation fee, and possibly one or two others. By the time the card arrives you already owe the lending institution around $140.

People who have credit cards often have a difficult time paying them off or paying more than simply the minimum required, which is all interest and not actual credit debt. Make smart purchases only, buying items that you can afford to pay off within two months.

Here are a few tips to weigh in managing your credit card related expenses:

1. When you apply for a card, you should be aware that it is solely your responsibility to repay your debts and fees associated with it.

2. Use your card only when you absolutely need to. It is more expensive repaying credit cards debt over time than with cash for immediate purchases.

3. Only use your card when you know you can pay it off during the following billing cycle.

4. Restrain further borrowing urges to only those loans that you truly need.

5. Don't pleasure shop. Only buy what you need.

6. If you find yourself drowning in debt, then seek professional credit counseling.