Today, average American family, for example, owes approximately $8,000 on its credit cards—and credit card companies could not be more pleased. If 115 million families owed you money—on which you earn finance charges and late fees every month—you would be positively giddy, too.

Let’s say you have an outstanding balance of $2,000 on a single credit card. Your annual interest rate is 9%, and your credit card company requires you to make a minimum $30 payment each month. Assuming you do not miss any payments (which would cause your interest rate to rise, as well as add late fees as high as $40 per month), it would take you 204 months to pay off this balance if you make only minimum $30 payment each month—and by then, you will have paid an extra $1,028.43 in interest. This is how debt begins: A $2,000 charge winds up costing you $3,028.43.

4. Switch Cards If you are still paying an annual fee on your credit card, it’s time to make switch to a card that is not only free, but rewards you for using it.

Assuming you have good credit and can secure a new card, explore your options. Banks offer cards that award cash-back bonuses, airline miles, gasoline rebates and other perks each time you use them. If you can manage your credit appropriately, keep pace with payments and pay your bills on time, you may as well reap benefits of your spending habits.

5. Read Your Statements—Carefully Some consumers pay their credit card bills without carefully reviewing their statements. This is one of most serious mistakes you can make—especially in an age of identity theft, when someone can use your card to make purchases in your name.

Always keep your credit card receipts, and check them against bill when it arrives each month. Make sure every charge is accurate, and notify your credit card company immediately if there are any charges you did not make. The company can reverse charge if it is a simple error—or if someone has used your card without authorization. In latter case, ask company to cancel card, review any additional purchases made since that date and issue a new card with enhanced security features, such as a personal identification number (PIN), to be entered each time card is used.

In addition, check due dates on credit card bills. You may be used to paying your bill by 20th of each month, but credit card companies have been shortening length of time consumers have to pay their balances. Very often, there is no notification of a policy change—or fine print is buried somewhere on your statement. Note payment due date each month, and try to pay full amount to avoid accruing interest or late fees.

------ Australian Debt Reduction offers all Australian consumers free debt consultations to assist them in getting back on top of their debt. They explain debt consolidation in simple terms and if you have over $4,000 in debt there are methods available to Australian public you may not have heard of to help limit amount of interest paid and rapidly reduce your debt. Visit Australian Debt Reduction at http://www.australian-debt-reduction.com.au or contact them directly on 1300 306 272

4. The Early Bird Catches Penalty If you receive a sudden windfall and decide to pay off your entire mortgage earlier than planned, make sure there is no penalty for doing so. You always want to secure a mortgage that specifies there will be no penalty for paying it off early, but if you happened to miss this clause in contract—something you’ll definitely want to avoid in future—think twice before writing a check.

Speak with a certified financial planner—someone with nothing to gain from whatever decision you make—to determine best way to handle this situation.

5. When Unexpected Happens… If you suddenly lose your job or suffer an illness that will create a temporary hardship, it may be difficult to keep up with mortgage payments. Protect your investment—and prevent foreclosure—by working out a forbearance agreement with your lender.

“A forbearance agreement allows for a temporary change, such as lowering—or, in some cases, eliminating—your payments for a specified period of time,” says Andrew Housser, Stroh’s partner and co-CEO. “In order to agree to this, your lender must be convinced that your hardship is temporary and that you will be able to get back on track in future. Otherwise, they may view forbearance as merely delaying inevitable.”

Other options, according to Housser, are:

• A loan modification, which serves as a permanent change in terms.

• A “deed in lieu,” which lets you offer deed to your home to prevent foreclosure.

• Sale of your home.

• Refinancing your mortgage for a lower interest rate or monthly payment.

Don’t make mistake that will cost you your home: saying nothing and defaulting on payments.

---- Mortgage Relief specializes in assisting Australian families with mortgages by making their monthly repayments more manageable and decreasing their overall debt and total interest paid over life of their mortgage. Mortgage Relief is a mortgage refinance provider that it part of Australia’s largest Debt Relief™ organization. Visit Mortgage Relief on web at http://www.mortgagerelief.com.au or contact them directly on 1300 789 014.