A recent survey by the Employee Benefit Research Institute (EBRI) indicated that 55% of workers have debt problems and aren't able to set aside much for retirement. Piling up debt on credit cards is often the pathway to major financial problems. To stay out of credit card debt that you can't manage, follow these six rules:

1. Pay the entire balance due each month.

2. If a balance remains unpaid at month's end, do not use the card again.

3. Do not use more than one credit card.

4. Do not accept credit cards from specific retail stores.

5. Do not pay off one credit card with another.

6. Do not use your credit card to purchase gifts for people. Give them a nice card or letter instead. It is too easy to let your generosity exceed your ability to pay.

To monitor your spending habits, try this exercise. Take your credit card charges and your cancelled checks for the past year and do the following: Sort the slips into two piles. One pile is for the "must" payments such as utilities, taxes, medication, rent, mortgage payment, etc. The other pile is for the optional spending, such as meals at restaurants, gifts for people, recreational events or equipment, etc.

This review of how you spend your money may give you some guidance on how to spend more wisely, and it may even help you create a surplus of cash to invest for your retirement.

© MC 2013