So many of us sell ourselves short. We believe you need to be born into riches or that you need a sizeable amount of money first before you can make more money. This is a defeatist attitude that could stop people from accomplishing much in life. It is possible to build wealth using a little imagination and a fair amount of perseverance. Sounds simple? Well, it is, but it could become boring, which is why not many people follow through with the formula.

Why do we fail?

It’s actually a simple question, when you stop to consider it. We become lazy and worry more about what’s for supper than whether we should consider a more diverse portfolio. Some of us do not even reach that stage, instead we move money from one credit card to another, just to pay for that supper!

This might work for a short little while, but only until it starts to catch up with you. before you even open your fancy wallet to pay for a ticket to the opera or for that bottle of Johnny Walker, you discover you have maxed out ₤5,000 on your VISA card and another £3,000 on your MasterCard.

Debt consolidation could be a smart move, if you know what you’re doing and you will not be tempted into racking up even more debt now that the original debt has been squashed. The phone calls will stop, which might lull you into a temporary feeling of accomplishment, but remember, there are still bills to be paid. Your monthly payments become lower and this might signal, for some people at least, an opportunity to shop up a storm, which will really just take you back to square one.

What is the solution?

There is no single solution for everyone. Although bankruptcy might seem like an attractive option, think carefully on whether this is a viable option for you?

So what is the million-pound answer? It’s easy, really. Once you have cleared your debt, you should learn to go without spending all your disposable income all at once. Take your paycheck (or as much of it as you can bear) and spend it on assets. Be on the lookout for items that will put money back into your pocket.

And no, it does not matter which type of investments you choose, as long as they all enable you to get out of the debt trap.

Credit card companies do not want you to pay off your credit card debt. Why? Because, the more credit card debt you have, the more interest you have to pay. And interest is what credit card companies need the most. Credit card companies have helped to create the belief that credit card debt is part of our lifestyle.

We have learnt to accept it as part of life and that there is nothing you can do to escape it. A lot of people are spending more money than they make, and this increases their debt at an alarming rate. As your credit card balances increase, so does your minimum monthly payments. Eventually there comes a time when you will not even be able to afford your minimum monthly payments due.

Many people have fallen into the credit card trap. They spend money paying off other debt while using their credit cards to finance their way of life. Having a credit card is very convenient, and it is this convenience that has caused people to abuse it. Why not compare your monthly income to your credit card limit. It’s amazing how much larger your credit card limit is. We use credit cards for just about everything, and to max it out is pretty easy.

So how do you escape the credit card trap and regain control over your finances? Firstly, you should change your attitude towards your credit card debt and money in general. Here are 6 tips on how to break free from the credit card debt cycle.

1) Treat your credit card as if it is a loan. It is after all a loan the bank has given you that you have to pay back. You borrow the money and you have to pay it back. Change your attitude.

2) Always keep track of your balance. Instead of watching your credit card limit, take a look at your monthly earnings. Make sure that your credit card balance does not exceed your monthly earnings and how much you can afford for that month.

3) Keep all your purchase receipts. Costly errors can be cleared up quickly if you have the necessary receipts. It can also help you work out how much you are spending and potentially how much you have to pay the following month. Put your receipts in a safe place where you will see them everyday. As you pile of receipts grow, so too will your credit card debt grow.

4) Pay off your whole balance on time every month. This is the safest way to make sure that you are not in arrears. In this way you do not pay interest and there are no late penalties. And in the long run, the savings will be huge.

It you are struggling with paying off your debt, there are different options that can help. You may want to consolidate credit card debt, or get credit card counseling. They may be able to provide some insight and make it easier to get a grip on your monthly payments.

5) Use your credit cards only in emergencies. Easier said than done, your credit cards should be viewed as emergency cards. Don’t take them shopping or to restaurants, instead use your debit card or cash. If you use cash or your debit card you can spend until your bank account is empty, but at least once its empty you will have nothing more to spend. Amazingly, a lot of people are more comfortable with their credit cards being maxed out than having an empty bank account.

6) Keep you lowest interest rate credit cards and bin the rest. If you don’t have extra credit cards, you won’t find have the urge to use them.

Credit card companies thrive on individuals with high credit balances and high interest rates. But by changing your attitude and realizing that your credit card should not be abused, you too can enjoy a debt-free lifestyle. By using these 6 useful techniques, you may be able to break free from credit card debt.