We’re kicking off another year, and it’s the perfect time to think about how you could do things differently or better. That includes thinking about how you deal with credit cards. There are plenty of potential credit card mistakes people make on a regular basis. Let’s look at a few of the big ones.

Here are three credit card mistakes to avoid in 2010:

1. Make only the minimum payments.

If you’re looking for a sure-fire way to go into credit card debt and pay far more than things are really worth, then go ahead and keep making your minimum monthly payments. Your credit card companies will love you for it. After all, that’s how they milk you for the most money through interest payments.

Why this is a credit card mistake:  Minimum monthly payments are generally a very small percentage of the overall balance due. Not only could you easily keep on spending more than you’re paying off each month (leading to a higher principal debt), but your debt will take a much longer time to pay off than necessary (meaning you could pay a lot in interest). If you can only afford the minimum payments, then you’re spending far too much with credit cards. To stay out of this trap, never spend more than you can afford to fully repay during the same statement period.

2. Apply for a lot of credit cards.

If you apply for new credit cards constantly, now is a good time to stop. That includes not only applying to get your hands on more credit lines but also regularly applying for new cards to transfer balances the moment another introductory offer ends.

Why this is a credit card mistake:  If you constantly ask people to give you access to more credit, it can appear desperate. It makes you look like a higher lending risk than other applicants. Whenever you apply for a credit card, that bank’s enquiry will stay on your credit file for several years letting other potential lenders see that you’re not interested in a long-term relationship with your credit card companies (or that you’re putting yourself at risk of getting in over your head with too much available credit for your income level).

3. Go into credit card debt just to earn rewards.

Rewards cards, like the ANZ Visa Rewards credit card, can be great things. They let you earn rewards just for spending money you would have spent anyway. If you find yourself spending more than you otherwise would just so you can earn more rewards points, it’s time for a change.

Why this is a credit card mistake: Take a moment and crunch the numbers. How much money would you have to spend on things you don’t need just to reach your rewards point goals? Compare that to the total price value of the rewards you earn (how much would it cost you to simply pay for it out of pocket instead?). You’d be hard-pressed to come up with a scenario where rewards are worth more than you’re spending. Rewards points are not something to go into debt over. Rather than spending an extra $500 on things you don’t need now, put that money aside and treat yourself to a reward you really want later (after all, cash is taken anywhere — can you say the same about your rewards?).

Make 2010 a great year. Don’t get caught up in the same old common credit card mistakes you might have fallen victim to in the past. Only one person can get you out of credit card debt (or keep you that way), and that person is you. It’s all about the decisions you make, and a new year is a wonderful time to make better decisions.

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