Problems with credit card usage aren't usually something that happens overnight. They are the result of bad habits accumulated over the years. And just as it can be extremely difficult for long time smokers to quit, even if they know their health is at stake, so too good credit card management doesn't happen without a change in behavior. After all, people don't really abuse credit, the credit card charges end up abusing them. Here are some techniques to use to pay down debt and improve your financial health:



Don't let small purchases pile up into your credit card balance. The convenience of credit cards is one of the reasons they are so dangerous. We end up using them for the myriad of purchase we make, particularly those smaller ones, such the trip to the gas station, the video store, the restaurant. It can be quite a shock to get your monthly statement and find all those little nickel and dime expenditures added up to an $800 balance—that the credit card company is now cheerfully applying finance charges to. In our hectic lives it is easy to forget how many expenditures we make each month.

Two easy ways to address this problem are:

1) Get in the habit of using your debit card instead. This card takes the cost of the purchase right out of your bank account, so there is no credit balance incurred at all, and no finance charges. You are forced to only purchase what you can pay for. If you use this card frequently, however, be sure to deduct all the transactions from your checkbook right away, while the expenditure is still fresh in your mind. You don't want to end up overdrawing your bank account and perhaps bouncing checks you have written.

2) Get in the habit of using boring old—CASH. If you're the type of person who never carries cash, think about reacquainting yourself with it. You don't need the old fashioned gold money clip with a thousand bucks in it. You could just make sure you always have $50 or $100 with you to use for all those minor expenditures, those $20-$50 items that add up to the sizeable credit card balance at the end of the month. These days, there are ATMs where you can make cash withdrawals nearly every place you spend money. And again, you can only spend the cash you have in your bank account. You are therefore implementing better financial discipline.

What these techniques allow you to do is start to retool your credit card to be something used for emergencies or big ticket items. You may lose track of 10 minor $40 purchases you make during the month. But it's doubtful you'll forget the big screen TV you bought, or the trip to the emergency room.

The nice thing is, you will no longer have a nasty shock when you open your credit card statement. Pay down debt and remember: Credit, used wisely, can be an indispensable tool for managing your finances with greater ease.