Bangalore: Are you good at managing your finances, or do you depend on your credit cards to pay your bills and your everyday purchase? Credit cards undoubtedly have brought a change in our lives and our spending habits. Do you depend on your card and spend the maximum credit limit? Do you buy impulsively and purchase things you don't really need? The main reason for people to be living in debt is also credit cards. In order to save yourself from this, you must know to reduce your costs and protect your credit rating. Don't take a hike: If you have any existing debts the credit card companies hike the rates. They can't raise interest rates on debt you've already have accumulated. Hence it necessary that you make your payments on time and don't neglect your payments. Be Regular: Your rates won't be raised if you have been late on payments of other credit cards or loans. If there has been a mistake on one bill then it cannot trigger higher rates on other cards and loans. But what suffers is your credit score, which can eventually lead to higher interest rates and a tougher time getting credit and loans. Concentrate on Interest Rates: If you are charged different rate by your credit card companies. Then this must first apply the payment of the debt that has the highest interest rates. Hence if you want to save your money you need to finish the payments faster. Do Not Cross Your Credit Limit: When you cross your credit limit you are likely to charged some fee. You can avoid this fee by notifying your company that you'd like to spend more than your limit. But if you want to save yourself from being trapped in debt you shouldn't opt for the overspend option. Don't Give Your Kids Credit Cards: A credit card is granted only when you show them the income proof. Do not agree to your teen who constantly demands for a credit card because one mistake can effect his credit score for life.