Credit card offers arrive in the mail almost weekly (sometimes daily) tempting us to borrow more and more money. True, there are times when you will need credit to purchase a new car, a house, or for emergencies. The problem is that we live in a society that teaches us "instant gratification" is okay. So, most people whip out that credit card and buy whatever they want whenever they want it. In the beginning, there usually isn't a problem. People promise themselves that they'll pay the balance off when the bill arrives in the mail. Unfortunately, there almost always comes a time when they can't pay off the balance, and thus begins the credit trap. They now begin to add to that balance, telling themselves that some day they'll pay it off. Pretty soon, without fail, the balance becomes so large that they are making minimum payments with no idea of how to get out of the hole. Most people lack a basic understanding about how money works, and this coupled with that human desire for instant gratification is what financial institutions count on.

In the first year alone, more than half of the payments are consumed by interest charges. Even after five years, the balance is reduced by only about $600 - but more than $3,200 in payments have been made. Finally, after 39 years of minimum payments, the beginning balance is paid off. However, these "bargain" minimum payments total more than $13,500 - more than four times the beginning balance of $3,000! With this payment schedule, this $3,000 "loan" cost in excess of $10,000 in interest!

Now, just imagine what happens if the balance or interest rate is higher, or if more than one card has a balance. Hopefully, this example helps you understand why, once balances get to a point where you start making minimum payments, you have started down the path of "no return", and it will become increasingly more difficult to pay off the balance on your credit card(s).

The good news is that, if you are experiencing similar problems, there are solutions:

• Stop using credit cards (reread this page)
• Consider various ways to reduce the debt
• At a minimum, transfer the balance to a credit card with a lower rate
• If you have a home, consider a debt consolidation mortgage program (refinance or use a home equity loan)
• If you don't have a home, look into an unsecured debt consolidation program
• If you don't qualify for a debt consolidation program, begin a debt elimination program
• Find ways to save money that you can apply to this debt
• Consider a part-time job and use the extra income to payoff this debt