A lot of people do not realise however, that if you do run into trouble with your credit cards, you get a poor credit record. Not only is it stressful in having to pay off that mountain of credit card bills, you might have problems getting loans.

Here are some handy tips that you might want to follow to avoid falling into the credit card debt trap:

How much is too much?
Make a list of your purchases and then add up the total. Can you actually afford to spend this amount of money (even more so with the credit card interests)? Remove the things that you do not really need from the list. Avoid luxuries, impulse buying and any unnecessary spending. Stick to your budget or plan and spend only if you have put enough away for savings and emergencies.

Prioritise your payments
Pay off the more important debts first, such as the house loan, rather than paying off the installments for your new sofa. It will be better to know that you'll be having a house to live in rather than just a new sofa to sit on.

Set up a budget
Carry a small notebook with you wherever you go so that you can note down every single payment or expenses like petrol or dry cleaning. This will enable you to see which areas you can trim.

Shop for credit cards before you shop
Shopping around for a credit card can save you money on interest and fees. Many credit card companies offer incentives to use the card and other special features. You’ll want to find one with features that match your needs.

Pay now, save later
Pay more than the monthly minimal payments each month. If you only pay the minimum amount, it will take a very long time to pay off your balance. Set a time limit to which you have to pay off all your bills.

Stay flexible
Adjust your budget to suit your own quirks and hobbies. If you love watching movies, find another area to save. Set realistic savings and spending limits, but revise it if necessary. If you do not build 'personal treats' like eating out or going to the movies into your plan once in a while, you will lose the motivation to save in the long term.

Think ahead
If you know that you will be spending extra money (eg. the holiday season), open a separate bank account to store your money till that time comes when you need it. Not only will you not be tempted to take out money from your existing account, this money can be saved for future use or any emergencies. It's a relatively painless process, and when it's time to shop for the holidays again, you'll have all the money you need.

Stop making new charges
Do what you have to do to not make credit card charges- hiding them or even locking them away. If you can pay for something using cash, do so, but please control taking out cash with your ATM card too!