Credit cards companies exist to provide us with a way to make secure purchases and are both flexible and convenient methods of buying. This is why so many of us choose to use credit cards on a daily basis, not only for our larger and more expensive purchases, but also for our more regular day to day purchases too. However, to ensure you remain in favour with your credit card company you'll need to make certain you manage your credit card sensibly and responsibly.

These days, most of us are very aware of the problems we can get into if we aren't careful with our plastic. Badly managed credit cards can lead to a huge financial burden which can leave you in debt for years. This can have an adverse effect on your future chances when applying for loans, overdrafts and even mortgages!

But all is not lost just yet! There are 5 steps you can take which will help you keep on top of things, stay out of debt and improve your credit rating at the same time..

1. Always try and repay your full balance each month if it's possible. This will help you avoid any interest charges as well as ensuring you stay well clear of any late payment fees.

2. If you can't repay the total balance of credit card at the end of the month, you should always pay more than the minimum payment. This is because your minimum payment will be carefully worked out by your card provider to be mostly interest. So if you only make minimum payments it will take you years more to clear the balance.

3. If you have several credit cards, all with their own balances, you should consider transferring all these on to one card to consolidate your debt. You can either use a 0% balance transfer card, or take out a low interest loan to repay all of your cards. You will need to think carefully if this is the best option for you.

4. This point is one to consider very carefully! Compare credit cards in order to find the best one for your needs before applying. You may find that a reward card will suit you best if you pay your balance in full each month. However, if you plan to keep a card balance and make repayments each month, then a low interest rate credit card will be your best option. You can find a comprehensive explanation of the types of credit cards available here.