A typical American household has over nine credit cards. You may be dragging a debt of $6,000, but many are worn out in the struggle to pay their credit balances of over $25,000. In 2006 alone, less than 42% of credit card holders paid their credit in full per month. If you are one of these deadbeats, read on.



The siren call of credit card companies

The offers of credit card companies are hard to resist. If you are getting your first credit card, you may have been enticed by the tantalizing baits of:

"freedom to earn triple rewards"

"get started with cash back when you apply now"

"the more you spend, the more you earn points or cash"

"low fixed rate with reward points"

"no penalty rates, no rate hikes for late payment"

The benefits also include car rental insurance and travel accident insurance and the convenience of paying for anything you might need if you happen to be in any other part of the globe.

Now who wouldn't fall for these tricky words? And the credit card companies also tell you that you won't lose a thing when you switch from earning cash to points and back. True, but ask other credit card holders if the benefits outweigh the disadvantages. You may be getting some sad details.

Vicious Cycle

Credit card holders carry the burden of paying off loans, and before they can reach the finish line, they go again using their credit cards left and right, until they go bust.

This overwhelming cycle goes on without respite. Only those who take the bitter lesson start to think smart, spend less (unless it is necessary), and pay their credit cards debts on time to beat interest pile up.

There are stories of people who prefer to disappear from the face of the earth when they can no longer manage their debts. This act of desperation may not speak for all credit card holders, but this shows how difficult it is to cope with a life riddled with debts.

How to get back your sanity

Here are some useful tips to help you to organize your credit card debts before running to the mortgage companies:

Get all your credit cards and check the balances you have from each card. List all the current balances and get the minimum payment for each card. Rank each balance according to the lowest and highest interest rates.

Pay the credit with the lowest balance and go upwards to the next credit card with the second lowest balance. But don't expect to be debt-free in a year. It may take longer if you have maxed out on the number of credit cards.

Credit card holders? tips

One technique is to apply for a 0% APR credit card and try to transfer your high balance to that new card. You can make minimum payment for the duration of the 0% APR.

Calendar the due date of the balance so you can transfer to another 0% APR card, BUT PAY YOUR BILLS ON TIME to avoid interest rates that go as high $30 per month.

If you are getting a 0% APR card, read the small print and digest the facts about balance transfer fees. If the fee is less than your current charges, then get it.

People are wising up. It's about time to know the game that credit card companies are playing. So play smart and avoid the woes of majority of credit card holders.