What?s more, all your payments will always be allocated to the balance that will earn the credit card company the most money. This means that the balances with the lowest rates will be targeted first, while the balance with the much higher rate keeps accruing and compounding interest month after month. So, if you transfer a large sum in order to take advantage of this seemingly generous offer, you will likely be paying on it for a very long time before you ever get around to paying down the mandatory purchases, which are racking up some pretty serious charges in the meantime..

And we?ve only looked at interest rates here. There are also default penalties, late charges, over-the-limit fees, transaction fees, ATM fees, stop-payment fees, cash advance fees and annual fees, all of which are on the increase. Over half the states in the union have no limit on what credit card issuers can charge for annual fees and yearly interest rates. These companies are gouging their customers with charges that are downright outrageous, and unfortunately for us, legal.

So how do you avoid falling into these sneaky traps that the credit card companies set? If you are lucky enough to not be playing the losing game of credit card roulette, for heaven?s sake, don?t start! If you are already involved, get out as fast as you can. Here are a few basic steps.

• Don?t carry a credit card. It?s amazing how easy it is to ignore this obvious first step.
  

• Apply any extra money to your debts first. If you?re saving a little nest egg earning at a rate of 5%, but you have debts gnawing away to the tune of 12%, it?s not difficult to see that this is a losing proposition.
  

• Target one debt for elimination at a time. Pick the one that can be wiped out the most quickly first.
  

• Take all the extra money from the first debt and apply it to your second target.
  

• Continue in like fashion until you have dug yourself out of this miserable pit.
  

And finally, breathe a major sigh of relief and vow never to pass that way again.

Rosella Aranda, international marketer, writer and business mentor, collaborates with a team of experienced professionals to help people achieve financial health and peace of mind. To learn how to reduce your debt, view: http://www.FreeFreedomSeminar.com. For further information on how you can become financially independent, please visit http://www.FinancialFreedomWorld.com or write to rosella_aranda@yahoo.com.