Many Americans get more and more credit cards just to give themselves better credit status. The problem is, as time goes by, their debts get bigger. This form of debt is crippling our great nation.

Rather than falling into this trap, you need to learn how to avoid it and free yourself from the cycle of debt. Until you do that, you’ll be in a bad place.

The easiest method of doing this is the most obvious, don’t use a credit card. You may scoff at this as unlikely at best, but if you actually think about it and analyze the way you live, you can manage your money so you don’t need them.

Go over your old bank statements and ponder whether you spend more than you earn. Do you make purchases without thinking about the repercussions? If this is so, then you have some bad spending habits that you need to adjust.

Look again at your expenses. What you should do is get a rough idea of what you make a month and subtract all the regular costs, like power, petrol, and food. Once you’ve done that, work out how much remains.

All you have to do now is to not spend more than this when you use your credit card so that you can pay it back at the end of the month.

One of the dumbest things to do is to not pay the whole amount off at the end of the month. This is the way credit companies and banks make all their money, by charging exorbitant interest rates on late repayments.