I was just wondering what you would recommend as far as mix for taking pesetos, traveler's checks, & using credit cards?

I would like to use the credit cards as much as possible, and hearing about all the pick pocketing, I want to not carry too much cash, but I know traveler's checks can be a pain.. btw, I did get a money belt for security.

Will most places take credit card for services or what types of things will I need cash for (ie, restaurants, clubs, tours, clubs)?