What do most of us have in common? Incurring credit card debt and seeking ways to pay off a debt by utizing another credit card. The syndrome which is know as “borrowing from Peter to pay Paul” is the cause of ever rising consumer debt.

With the current economic crisis happening, the credit crunch is wreaking havoc on credit card interest rates. Despite the Federal Reserve has lowered the interest rates trememdously, the interest rates on credit cards have not be reduced at all. As a result, with the increasing burden of debts, many people are declaring bankruptcy or going into default. To make things worse, some banks are raising interest rates for those for those who have been making late payments and/or skipping monthly payments.

Here are five ways to help you deal with the current debt situation:

1. Debt Consolidation.
Don't get too happy or excited when you receive a credit card offer in the mail stating that you can pay off other credit cards by applying for the card with a 0% APR. Read the fine print first. Normally, the 0% APR is applicable for a short time only. If you are able to pay off the new card within the time frame given, then you can apply of it. Or else, you are just creating additional debt for yourself

2. Use Only One Card.
If you have more than one credit card, save one for emergencies only and cut up the rest of them. If you cannot afford to pay an item with cash, then you don’t buy it.

3. Starting Paying Off Your Debt.
During this recession, the next few years are going to be difficult. You can start paying off credit cards using the Snowball Method. First, you make a list of the credit cards, with the highest interest rate card at the top of the list. Instead of just paying the minimum amount required for the card on the top of teh list, you may want to pay a bit more than the minimum amount. Once your first card is paid off, you repeat the whole cycle again with the next card on the list.

4. Credit Card Checks.
You may receive credit card checks and sometimes, the check is probably made out to you for the amount of $1000 or more. The rest of the checks can be used for purchases or transfers. Throw them them up! It is very tempting to deposit the check and use the rest to make purchases. If you do so, you have just increased your own debts!

5. Department Store Credit Cards.
Many times, you have been asked by the department store cashier whether you wish to apply for their instand credit so that you can enjoy more discount for your purchases. Do not fall into the trap. If you are already in debt, do not add another one to it. Department store credit cards have the highest interest rate among all credit cards.

We are a nation in debt - over a trillion dollars' worth.  Since we do not know how long this recession will last nor how it will affect our income and retirement savings, it would be prudent to resist any temptations that may come your way inviting you to spend more than you can afford.