What is a debt trap cycle?

The more established you are, the more credit card companies seem to be trying to bump up your credit limits. What was once a $500 cap quickly turns into $5,000, and all that extra room can lead you to start buying things you can’t really afford, and so your debt starts to pile up.

That’s when the “debt trap cycle” can begin.

After splurging, you try to find a way to pay off your debt. Maybe you transfer your credit card debt to a line of credit with lower interest to ease the burden of payments. But that doesn’t solve the problem. You’re still in debt, just to a different lender. Meanwhile, the spending continues.

If the problem worsens, the pattern continues. 

Yes, but: If you’re trapped in a debt cycle, fear not. After you pay at least the minimum on each card, focus on paying down one card's balance entirely. You can also make use of installment plans (make sure you pay on time) while dialling back on spending to live within your means.