ALEXANDRIA, Va. — NCUA Board Chairman JoAnn Johnson has warned consumers against misuse of their credit cards during the holiday season.

"As a member of President Bush's Financial Literacy and Education Commission, I recognize the importance of encouraging good, common sense habits when it comes to using credit cards. These are valuable instruments that give consumers more flexibility when it comes to making purchases, but they also carry with them responsibilities that consumers should be aware of, particularly in preventing identity theft," said Johnson.

Among the practices Johnson urged consumers to adopt were using caution when using cash advances and reading the fine print in the agreement, particularly since they usually carry higher interest rates. She also suggested paying the maximum amount possible on your credit card balance. Paying the maximum, instead of the minimum, she explained decreases the time it takes to pay off credit card balances, saves money in interest charges, and helps establish a better credit rating.