Q: Whenever I log into my machine and I try to hit the backspace key, it does not erase characters like I expect it to. Instead, it prints a ^H for each keypress. How do I erase?

A: UNIX gurus never make mistakes. That is why the backspace key does not work in UNIX.
KIDDING! Relax, it was a joke!

SUMMARY:
1) Use stty command to change setting for 'erase.'
2) Test for desired result.
3) Make the change permanent.

DETAILED:
1) Use stty command to change setting for 'erase.' Type:
stty erase '^H'

You can use either single or double quotes (i.e. '^H' or "^H"), but be sure to enclose the ^H in quotes.

Another way to achieve this same result is to type:
stty erase

(make sure you put a space after erase), and then press the backspace key. The line will end up looking similar, except without quotes around the ^H. When done this way, it is fine - however, if you type it manually, you need to enclose it in quotes.

2) Test for desired result. Type something on a line and then press the backspace key to erase it. Feels good, doesn't it?

3) Make the change permanent. The change you just made is temporary. When you log out and log back in, the backspace key will go back to the ^H behavior. If you would like to make this change permanent, you will need to add the following line to your shell configuration file:

stty ease '^h'