"What's in your wallet?"

Too many credit cards.

Research we've seen says the average consumer has four to nine cards, with $19,000 in available credit.

All too often it's a motley collection of Visa, Exxon and Sears cards pushed on us by relentless advertising campaigns that fill our mailboxes with 6 billion "introductory offers" a year and force applications on us every time we go to the store.

If you have the right credit cards, you only need two or three. That's why our 4-step plan helps you step back, take stock and walk away with the cheapest fees, lowest rates and most valuable perks.

Just reducing the number of cards you own will:

• Save hundreds of dollars a year if you eliminate those charging annual fees.
• Limit impulse shopping. "Too many credit cards get a person into trouble, as they simply say, 'Charge it!' to everything, and thus live above their means," says Peter J. D'Arruda, an investments expert and creator of the Financial Safari book and workshops.
• Save time and money when paying your bills. You'll also be less likely to mail a payment a few days late, saving $30 or more in late fees and avoiding universal default, which can double your interest rate to 25%, 30% or more.
• Mean fewer frantic phone calls if you lose your wallet. It's even less work if you move and have to change your address.
• Make you less susceptible to identity theft. It happened to 9.9 million Americans last year, and the average victim spent 40 hours and $442 straightening everything out. Here's where to learn more about thieves who steal credit card bills out of your purse or mailbox.
• Lower the risk of being denied for a loan, or charged a higher interest rate, because you have so much available credit that you're considered a greater risk.

As a result, we think it's smart to carry only a couple of credit cards, or perhaps a debit card and a single credit card, with a spare credit card in a safe place at home.

Two or three cards should provide enough credit to absorb a big purchase without pushing you up against your total spending limit. If one card isn't accepted for some reason, you always have a backup. And if you lose your wallet and cancel the cards you were carrying, you still have one that's available to use.

Here's our step-by-step plan to pick the winners from the losers among your current billfold full of cards, or to find a better one than you currently have:

Step 1. Pick a bank card that has the lowest interest rate and no annual fee.

Start by looking at your Visa and MasterCard statements to see which of your existing cards has the best rate.

Then go to our rate charts to see if you can find a better deal. Choose the card type (rewards, cash back, low interest, etc.), credit type (excellent, good, fair or poor), or issuers (Visa, MasterCard, etc.) and click "GO."

With average or better-than-average credit, your goal should be a card that charges less than 10% annual interest, charges no annual fee and provides a generous credit limit.

Break ties by comparing other fees, such as penalties for late payments and interest rates on cash withdrawals, as well as grace periods (the higher the better).

Step 2. Pick another card that offers the best rewards for you.

If you love to travel, then a card that awards points redeemable for airline tickets or hotel stays is for you. Or maybe you want a card that allows you to buy electronics from a catalog, shop at a favorite store, or obtain hard-to-get concert tickets. Or maybe you just want some of your hard-earned money back. In that case, go for a rebate card.

This can be another Visa or MasterCard, or an American Express, Diners Club or Discover Card. It may charge an annual fee and considerably higher interest rates.

The point is to find a card with rewards you will value and use.

If you already have a favorite with tens of thousands of points just waiting to be used, look no further. It's a keeper.

If you need a better sense of what's available, or want to do some comparative shopping, go back to our rate charts, enter your state and city, or ZIP code, on the first page and then choose "Rewards credit card" on the second page.

Step 3. Keep the winners -- ditch the losers.

If you need to apply for a new card with a better interest rate or rewards, do it. Once you have your two keepers in hand, get rid of the others.

Don't fall for prestige over practicality. It doesn't matter if a card is gold or platinum. Don't keep an American Express or Diners Club card just because it makes you feel special.

Take the scissors to all of your store and oil company credit cards, too. They typically charge the highest interest rates and are good at only one chain of stores or filling stations.

Yes, some oil companies do offer modest rebates for the gas you buy, and department stores send special deals to their cardholders as an incentive to come in and shop.

"The drawback," D'Arruda says, "is that many times, in order to qualify for the special, one must use the department-store-issued credit card. This may get someone to spend beyond their means."

If you use your rewards card at those stores or pumps, you're still saving money, just in a different way. Taking everything into account, you're better off without them.

Transfer any balance on the cards you're getting rid of to the one you're keeping that has the lowest interest rate. Then cut up your discarded cards and write to each creditor to close the account.

You'll need to get or keep a second, low-interest Visa or MasterCard if:

• The credit limit on your first low-interest card isn't enough to cover all those debts and leave a comfortable amount for future spending. A good rule of thumb is to use no more than half of your credit limit, and holding your balance to 25% of the limit is even better.
• You chose an American Express, Diners Club or Discover reward card. These cards are not as widely accepted as bank cards.

Step 4. Use your cards wisely.

Do most of your spending with your rewards card. Click here to see how one smart Interest.com reader uses her airline card to the best possible advantage.

Keep one low-interest Visa or MasterCard at home as a backup.

If you chose an American Express, Diners Club or Discover rewards card, put that second Visa or MasterCard in your wallet, too. That way you're covered if you find yourself trying to buy something where those cards aren't accepted.

Try to pay your rewards card off each time you get a bill. If you're carrying a balance, transfer that debt to your low-interest bank card every few months.

Here are some tips on how to curb credit card spending.

By Melissa M. Ezarik

Interest.com Contributing Editor