How often should one COMMIT in a PL/SQL loop? / What is the best commit strategy?

Contrary to popular believe, one should COMMIT less frequently within a PL/SQL loop to prevent ORA-1555 (Snapshot too old) errors. The higher the frequency of commit, the sooner the extents in the rollback segments will be cleared for new transactions, causing ORA-1555 errors.
To fix this problem one can easily rewrite code like this:
FOR records IN my_cursor LOOP
...do some stuff...
COMMIT;
END LOOP;
... to ...
FOR records IN my_cursor LOOP
...do some stuff...
i := i+1;
IF mod(i, 10000) THEN -- Commit every 10000 records
COMMIT;
END IF;
END LOOP;
If you still get ORA-1555 errors, contact your DBA to increase the rollback segments.