We're planning our first trip to Europe. We don't want to carry a bunch of cash, but traveler's checks seem like a big hassle. Our plan is to use our credit cards whenever possible. Does this sound wise?
Carrying large amounts of cash is never a good idea, as you have already decided. You'll need some cash, however, for small dollar purchases with street vendors, taxicab fares, etc. If possible, get your foreign currency before you go, and be sure to get plenty of bills in small denominations, and keep abreast of the exchange rate.
In terms of using your credit cards abroad, contact the card issuers in advance to find out what extra fees could come into play, and use the card with the most favorable fees. Specifically, when you charge something in a foreign country, the merchant there deposits your charge slip into his merchant account and his bank gives him credit in his country's currency. His bank then has to settle with the bank that issued your credit card, and in the course of that, an exchange rate will need to be applied. Visa and MasterCard each assess a fee to cover the cost of a currency exchange, and these days it's likely your card company will tack on an additional fee of its own. Compare the fees that will be assessed by the different companies you have cards from and use the one with the lowest fees.
Don't forget to tell your card company that you're going. Call them in advance and let them know of your travel plans so that when charges start coming through from exotic venues they'll know it's you out there, and not a crook carrying your stolen card!
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Carrying large amounts of cash is never a good idea, as you have already decided. You'll need some cash, however, for small dollar purchases with street vendors, taxicab fares, etc. If possible, get your foreign currency before you go, and be sure to get plenty of bills in small denominations, and keep abreast of the exchange rate.