Sometimes credit card can lead a person into living a lifestyle that is beyond their means. If a person gets in habit of dining out two to three times a week and these meals are paid for by credit card, card balance increases quickly. Often additional expense was not planned or budgeted. People can even end up spending more each month than actually earn.

This can continue as long as credit card balance is below limit and person makes their regular monthly payments. But as soon as credit limit is reached, many credit companies will increase credit limit and give person more room to get into debt. I have personally seen a credit card limit expanded by $10,000 within three months.

This cycle can continue until person is required to make a minimum payment that is more than they can afford. Now not only do they have to cut back on lifestyle they have grown accustomed to over years, but they also have to either increase their income or cut out things they enjoyed before increasing their lifestyle with their credit card.

Also what happens if person is suddenly out of work or has to take a pay cut or lower paying job. That's right, credit card bills keep coming. And many people rely on remainder of their credit limit to supplement their income until they are working again or can find a better paying job.

We have seen this cycle in America increase average credit card balances each year and eat up equity in many people's homes. Home equity loans are used as credit cards to live a lifestyle that is beyond people's means. Or to purchase toys they really can't afford to buy let alone keep and use.

Or home equity money is used to "pay off high interest credit card debt" as ads suggest. But then people continue habit of living off their credit cards and get right back into debt again.

So what is answer to America's growing debt problem? Abolish credit cards? Nationally imposed credit limits?

How about a little old fashioned self-discipline? I know is not in style anymore but it is still best policy.

Bottom line: pay off your credit card balance each month. Don't buy something now and expect big end of year bonus to pay off your credit card. Even if you do get it, you will probably spend it on something else.

Don't fall into habit of living off your credit cards. If you have $1000 of disposable income to spend each month, whether through a credit card or in cash, only spend $1000. Don't try to make up for extra expense this month by assuming you can catch up on your credit card payment next month. It won't happen.

If you have developed bad credit habits, cut up your credit cards, or only keep one for emergencies and resolve to pay off balance each month. Then create a plan to get yourself out of debt and stick to it.

You can relieve stress, avoid family conflicts and sleep better at night knowing that there are no credit card wolves howling at your door.

You may need to examine your spending for last several months. Find things you can eliminate or do without for a while. Postpone purchases, cancel subscriptions. Anything to free up more money to pay off your debts.

You may even want to postpone investing for awhile. Are your investments beating that 18% you are paying on your credit card? If not, a better investment would be to repay your debts.

Once you have your monthly debt repayment amount set, you need to write down each monthly debt you are paying. Record creditor's name, current balance, and interest rate. Then take a separate sheet of paper and reorder debts so that debt with highest interest rate is at top.

Now as each monthly bill comes in pay minimum payment. Subtract minimum payment amount from your set monthly total. After all bills are paid for month, take any extra money left over and make another payment on debt at top of your list.

You can make an additional payment this month or save money to add to next month's bill. But don't spend it!

As each debt is repaid, cross it off your list, but keep paying total monthly amount you set at beginning. This will accelerate your debt repayment and save you hundreds or even thousands in interest charges.

The two keys to your ultimate debt elimination plan are to 1) stop getting further into debt and 2) set your monthly debt repayment amount. The rest is easy. You will be debt free before you know it!

************************************************************ © Simple Joe, Inc. David Berky is president of Simple Joe, Inc. which sells Simple Joe's Debt Eraser PC software. Debt Eraser can help anyone get out of debt quickly and inexpensively by creating a Rapid Debt Reduction Plan. This article may be freely distributed as long as copyright, author's information and an active link (where possible) are included.