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For many people, credit cards have a valid place in their life. However, without proper money management, a credit card is an open invitation to buy more than you can afford. Based on the most recent statistics that shows the total credit card debt for the United States hovering around 1 billion, according to the Federal Reserve, it seems as though plenty of Americans are taking advantage of their credit cards.

To live within your means, one should only purchase items that fit within your budget; however, a credit card can be a useful tool for establishing a credit history, vital to obtain home, auto, and other types of loans.

If you're considering closing your credit card account (or opening a new credit card for the first time), weigh the pros and cons of having one or more credit cards in your name.

Pros

Rewards: Most credit cards offer reward points in exchange for using those cards in lieu of cash. Typical rewards include cash back, air or travel miles, and points for gift cards or merchandise. These rewards can come in handy if you choose the right card for your lifestyle. For example, if you plan to take an expensive vacation in the next year or so, opening a credit card with great air mile rewards is a smart choice, provided you use the card responsibly.

Added Security. If a thief steals cash out of your wallet, you have no recourse. However, if your credit card is stolen and used, U.S. law limits your liability to just , no matter how much the thieves charge on your credit card. To take advantage of this added security, you must report the theft within 60 days of receiving the statement that includes the stolen charges. However, if only your credit card number was stolen rather than the actual card itself the law states the credit card owner has zero liability.

Established Credit History. Obtaining a loan is more difficult than ever, and a solid credit history can help show lenders you're worthy of a mortgage or auto loan. Although there are other ways to establish credit, a reputable credit card in your name with a low- to mid-range balance that is paid on time is the best proof of being a responsible consumer.

Cons

Interest: If you don't pay your credit card balance every month, you'll accrue interest, making your purchases more expensive than they were initially. The average interest rate (known as APR) as of November 2011 is 14.99 percent; however, the average rate for those with bad credit is 24.99 percent, according to CreditCards.com. If you plan to pay off your balance every month, though, interest won't be a problem for you.

Fees: Fees can run rampant when it comes to credit cardslate fees (as much as 25 percent) and annual fees are just two examples. It might be possible to avoid fees, though, if you pay your bill on time every month and avoid any credit cards that have annual fees. A general rule of thumb is if you don't plan to pay off your balance each month, look for a card with a low interest rate, despite the annual fee. If you do plan to pay off the credit card monthly, look for a card free of annual fees, despite the interest rate.

Overspending: One of the biggest concerns when it comes to credit cards is the risk of spending money you don't have. When a credit card offers you the chance to spend anywhere from ,000 to ,000 to ,000 or more and not have to worry about paying it back until later, it's tempting to take them up on that offer.

In the end, holding a credit card is a personal choice. However, maintaining a little personal responsibility can mitigate the cons of credit cards. By paying your balance each month, finding a credit card without annual fees, and avoiding spending money you don't have, in many cases, only the perks of a credit card remains.