You may have not really noticed how the bills have been getting higher and higher. Then one day, you open your credit card bills and wonder how you'll even make your minimum payments. Congratulations. This is where change happens.

You've reached your breaking point. The point where you have to change how you manage your money. It can seem like an awful time. You don't know exactly how to get out of this mess. But don't worry, all you can do now is go up -- you've hit the bottom already.

Let's look at some credit card truths. All credit cards are not bad. Credit cards can be very nice in some situations. What is bad is charging to your cards and not immediately paying it off. Here is the truth about credit cards:

Truth #1: Not paying off your credit card each month will cost you.

You have to pay off the card each month or you will be charged interest on your purchases. It may not seem like a lot at first, but that three dollar breakfast at the fast food place could cost you $30 before you are finished paying for it.

Truth #2: Minimum payments cost you maximum money.

If you only make the minimum payments, you could pay for years and years without seeing the bottom. Minimum payments are only two to three percent of your balance. You are paying interest and just the slightest amount to the balance. Check it out. Compare the finance charge with your minimum payment. There will only be a slight difference in the amounts. If you are paying $10 and being charged $9.50 in interest, your balance isn't going down very fast.

Truth #3: You don't need more than two credit cards.

Some people will even argue that you don't need more than one. If you have more than two, it can become difficult to keep track of each account -- checking for errors and keeping track of spending. You need to read each account statement every month.

Truth #4: Credit cards call up your interest rate at any time.

Some credit card companies can increase your interest rate without any notification. You are comfortably paying a nice 10% credit card, then one month, before your eyes, it changes to 29%. It happens. And there isn't a thing you can do, except pay the card off and close it.

Truth #5: Getting out of credit card debt isn't easy.

Paying off your debt takes time and a lot of money. Money that you didn't have in the first place, or you wouldn't have used your credit card. But it is possible. And it is worth it. There is no better feeling than knowing you only owe your student loans and your mortgage. There is no better feeling than having all that money you used to pay to your debts back in your pockets.

Simply start with taking a good hard look at your finances. Create a budget and stick to it. Pay off one card at a time, if necessary. It may take years, but it will save you years of payments. Remember, it's a long process, but worth it. Oh -- and cut up all the cards right now. You don't need them anymore.

Copyright 2006 #1 Loans USA

Martin Lukac, represents, #1 Loans USA(http://www.1LoansUSA.com), a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. For mortgage rates please visit http://www.RateEmpire.com