In fact, many people have such high balances that end up paying only a minimum amount every month. This is why they take years to pay down their credit balance.



High rates and spending patterns result into escalation of debt. But there are solutions, which will help you avoid falling in a trap.

The first thing you can do is targeting highest interest rate. Try to transfer that balance to another credit card where you have zero interest rate or low interest rate for a set period and you can then concentrate on other dues. If you cannot transfer then pay off as much as you can so that the balance reduces quickly.

Some card companies will also offer you 0% balance transfer and other purchase offers. Check these offers and see what are the advantages available for you. Also plan how to deal with the balance after the offer gets over because you will still have to pay.

If you can make at least a base payment on your credit card every month then high interest rates and late fee penalties can be avoided.

Another very important thing that you should remember while shopping is to keep into account what you are buying i.e., is that thing so important to you that you have to have it right away. This means self-restraint.

It is very important to have personal control if you want to save yourself from falling into a debt trap. Think before buying. If you find that the item is not that urgent then you can delay your purchase and save money at that moment.

There are fewer chances of you to be in arrears when you use the plastic money wisely i.e., you should use them only in urgent situations instead on using it now and then. All you need to do is think carefully.

Another way to avoid debts is to keep a minimum number of cards, say at least two of them should be fine. Do not clutter yourself with a number of them as this will give you more options and you will end up using all of them. With more cards you realize that your purchasing power is more and you will keep on purchasing things.

Keep the cards away and close those accounts, which you don't absolutely need. This is another way of minimizing your options and avoiding a debt trap.

If you start following these rules you can actually turn your financial situation around. It is very important to use your plastic money in wise manner. As long as you make your payments on time and stick to the plan you have a much lesser chance of falling into the debt trap.

You just need to put in little effort to save yourself from falling into a debt trap. Take some time to look into your options available that can make a difference. You can of course make a lot of difference with discipline.