Credit cards can be used to pay for nearly everything these days--groceries, a state-of-the-art home entertainment system, even an income tax bill to Uncle Sam. And gone are the days when you charged everything to the sole credit card in your wallet. Now there's likely to be a bunch of cards jockeying for position--everything from traditional credit cards, travel & entertainment cards, merchant cards...and let's not forget the ever-increasing array of reward cards, which promise airline miles, cash rebates, merchant discounts, even contributions to a 529 college savings plan.

But this convenience comes at a price. Unless the full balance is paid each month, the credit card issuer can legally assess double-digit interest on the entire monthly balance--even the paid portion. According to the American Bankers Association, a nonprofit banking trade association, the number of consumers who are past due on their credit card bills hit a record high in the fourth quarter of last year. And the Federal Reserve recently reported that consumers increased their credit card spending in the early months of 2007.

Wading through credit card gimmicks can be tricky. For example, when a credit card issuer states that you have been "pre-approved" for a card, it doesn't mean that a credit card will arrive in the mail automatically. Instead, it only means that the issuer thinks you are a credit-worthy candidate. The credit card will arrive in the mail only after the issuer has satisfactorily reviewed the information in your credit application.

For a more in-depth analysis of various credit card offers, we highly recommend several blogs to you from around the Web. Some of our advisors' favorite blogs are: MyMoneyBlog, The Simple Dollar, Young and Broke, Get Rich Slowly, and Generation X Finance.

Keep in mind, these external blogs are a wonderful resource to get your financial mind churning. As with any information, we encourage you to seek additional sources of information. Remember, nobody cares as much about your money as you do.