Handle Bar Adjustment

Question
I just recently got into bicycling with my wife.  I'm embarrassed to say, but I bought some cheap bikes from Canadian Tire...

Anyway, I was having some pain problems and after fiddling around (And reading online) I think I have the saddle set perfectly.  (Can just reach the ground with the balls of my feet.)  It's been great for my knees (they used to hurt).

Now, I seem to get horrible cramping pain in very middle of my shoulders, at the base of my neck.  I also noticed that my hands can go numb after a while.  My first feeling on this is that I have the handle bars set to low.  They are currently just below the seat height.

Where should the handlebars be and what is the best way to set them?

Thanks in advance.

Answer
Hello,
Yes you need to raise the handle bars. This will put you in a more Upright position.
If this does not help then maybe look into geting a Cruiser bike or a hybrid.
As for your hands two things you do is 1) get smaller hand grips and 2) If yuo have an andled bar, turn it in more so its curved towards you.