Many people fall into the trap every day. They start to use their credit cards more and more, just a little bit at a time. One day they wake up deep in debt. The average American consumer has 9 credit cards and 52% of Americans owe over $5,000 on credit cards and/or installment financing plans. About 15% of creditors have their credit cards at over 80% of their credit limits. That can spell big trouble. If you are one of those who are maxed out on your credit cards or rapidly approaching it, you've got to do something about it, and soon.

The problem is many folks depend upon their credit cards and revolving charge accounts. They are using them for the convenience and, in many cases, to maintain a lifestyle they can ill afford to keep. If you are a convenience credit user who pays all, or most of their outstanding balance every month, you will have few problems. If, however, you find yourself getting deeper and deeper in debt every month, you must take action now. Failure to do so may mire you deep in a credit hole you may not be able to escape.

You have several options, but the one thing you must do in order for any of them to work is control your spending. There will always be life's emergencies such as a big medical bill or unexpected car repair. These are mostly unavoidable. If, however, you have a pattern of spending up your credit balances every month just to maintain a lifestyle, you've got to stop now. Once you have your spending under control, you can examine your options.

One option is to get another job or source of income. You can work evenings or weekends. If you have special expertise in a certain area, you may be able to become a part time consultant. Some consulting work is very lucrative. You can also start a part time business, but in most cases this will take a bit of capital to get going. There are, however, many business that you can begin for just a little money, but these will still take time and effort if you are to be successful. You want to be careful that you don't begin a business with no plan and then find yourself even deeper in debt with very little additional income to show for it. If you do plan on starting a business to earn some additional income, do yourself a big favor. Do plenty of research to find the proper business and then do a good business plan. Revise the plan as necessary, but do your best to stick to it. Taking these steps will really help ensure your success.

For many people, who are just a little bit upside down in their cash flow every month, a great option can be a debt consolidation loan. If you own your home or other substantial real estate to use as collateral, there are many lenders who will give you a low interest loan to pay off your many different, high interest loans. This is beneficial in a few ways. The primary benefit is that you can substantially lower your total monthly payment by using a consolidation loan instead of having multiple credit cards.

In addition, it is much more convenient to replace many loans with one. It will involve much less time and paperwork to pay your bills every month. You will also be less likely to forget to pay one of your credit card bills. Missing, or being late on, a payment can begin what is known as the credit card death spiral. Most creditors will raise your interest rate, charge a late fee, or both. In most cases, they will most likely hit you with both options. The interest rate will raise your minimum monthly payment. If you were right on the edge of being able to afford the minimum monthly payment, the increase can send you over that edge.

A consolidation loan can really help with your monthly finances. However, such a loan can also have a dark side. Because your home is usually the collateral that secures the loan, you can lose your home if you default. This is the reason it is vital to curb your excess spending. You must be able to consistently make the monthly payment on the consolidation loan.

Credit can be a great thing. It lets you buy a home, run a successful business, drive a nice car and have access to extra cash in emergencies. It can also suck you in and create a dependency. You can, like many Americans, become addicted to the added spending power it allows. If you are not careful, you can find out it was all an illusion, and you are now in trouble. Take control of your credit while you can. Before it's too late.