I also collected charms to use later, but the game becomes easier as it progresses, so I only used one. After I decided not to use any more, I still collected charms, to use up the gold and loot I was accumulating.

If you do not need to increase a stat or resistance, don't; that way if you do run into problems, you will have some open slots. My equipment (with a warrior) at the end of the game is listed below. The dragon armour set, silver armour, holy amulet/dagger, boots of the vampire, sword of the gods (in wastelands) are probably the best equipment.
Minor SPOILERS
Sword Of The Gods - found in a house in the wastelands. DeathBlow shakes the screen; had this happened more frequently, I would have had to re-load a previous save.
Durability 24
Charm Quality 1
Damage 71-100
4 Strength
6 Agility
6 Intelligence
4 Constitution
4 Offense
100 Vitality
60 Magic
DeathBlow(3)
LifeDrain(5)
Breastplate Of The DragonheartDurability 12
Charm Quality 3
Armour 440
2 Defense
100 Vitality
60 Magic
15 Resistance to Fire
40 Resistance to Lightning
15 Resistance to Spirit
4 Hearing
Survivors Instinct +1
Breastplate Of The Dragon - before the upgrade
Durability 30
Charm Quality 1
Armour 390
6 Strength
6 Intelligence
60 Vitality
100 Magic
15 Resistance to Lightning
15 Resistance to Poison
2 Hearing
Heaven's gift +1
Shield Of The DragonDurability 45
Charm Quality 2
Armour 280
2 Strength
6 Agility
8 Constitution
80 Vitality
20 Resistance to Fire
10 Resistance to Poison
3 Hearing
Elven Stamina +1
Deadly Gift +1
Helmet Of The DragonDurability 26
Charm Quality 2
Armour 450
4 Strength
40 Vitality
100 Magic
40 Resistance to Fire
40 Resistance to Spirit
2 Sight
3 Hearing
Alchemy +1
Gloves Of The DragonDurability 28
Charm Quality 1
Armour 220
4 Agility
2 Intelligence
2 Constitution
80 Vitality
60 Magic
20 Resistance to Lightning
4 Sight
4 Hearing
Aura Of Command +1
Belt Of The DragonDurability 13
Charm Quality 1
Armour 100
2 Agility
6 Constitution
40 Vitality
40 Magic
15 Resistance to Spirit
2 Sight
3 Hearing
Pickpocket +1
Alchemy +1
Boots Of The Vampire - from the vampire cave
Durability 10
Charm Quality 5
Armour 70
2 Defense
80 Vitality
80 Magic
Identify +1
Imp's plate Leggings - bought from Kroxy in the wastelands
Durability 14
Charm Quality 1
Armour 200
10 Strength
3 Hearing
Amulet Of Glory - found at the bottom of the catacombs, in one of the four rooms under the tiles
Durability 10
Charm Quality 2
10 Strength (gold charm, from first dragon rider)
40 Vitality
40 Magic
10 Resistance to Fire
Sapphire Ring - in Verdistis, from the patient healed at the start of game
Durability 10
Charm Quality 2
6 Constitution
40 Vitality
40 Magic
10 Resistance to Lightning
Alchemy +1
Ruby Ring - from the house north of the cursed Abby
Durability 10
Charm Quality 4
4 Strength
60 Vitality
40 Magic
Some of my previous equipment included;
Nobleman's SwordDurability 12
Charm Quality 3
Damage 71-100
2 Strength
4 Agility
6 Constitution
60 Magic
Life Drain(4)
Stun(5)
lightning Damage(5)
Spiritual Damage(4)
Bastard Sword - two handed, from the knight south of Stormfist castle
Durability 22
Charm Quality 4
Damage 68-113
Lightning Damage(2)
Life drain(3)
mana Drain(2)
Polished Chain Leggings - from the imp castle??
Durability 29
Armour 150
2 Intelligence
1 Defense
42 Vitality
8 Resistance to Lightning
Closed Helmet - from the council hall
Durability 14
Charm Quality 2
Armour 200
8 Agility
10 Constitution
100 Vitality
15 Resistance to Lightning
10 Resistance to Poison
Dwarven Plate Armour - from the council hall
Durability 15
Charm Quality 3
Armour 340
2 Intelligence
80 Vitality
80 Magic
5 Resistance to Lightning
I never used the silver armour, but;
Silver Breastplate - before the easter egg upgrade
Durability 23
Charm Quality 2
Armour 410
10 Constitution
15 Resistance to Poison
Polymorph +1
life Leech +1
Armour Of Larian - after the easter egg upgrade
Durability 19
Armour 410
4 Agility
10 Defense
40 Vitality
20 Magic
10 Resistance to Fire
40 Resistance to Lightning
20 Resistance to Poison
3 Hearing
Lightning +1