Money Fix: Kicking the credit card habit

Knowing when to say when isn't just for booze, it goes for credit cards, too.

Americans, however, are back in love with credit cards. According to the Federal Reserve Board, in November revolving debt ballooned 8.5 percent over November 2010 to $798 billion. And holiday spending was nearly 5 percent higher than a year earlier.

Draw a line in the sand. "Say you will never have credit card debt again," says Dave Ramsey, author of "The Total Money Makeover."

Have a plastectomy -- plastic surgery. Cut up all your credit cards. Or go cold turkey for a month. Pay cash for everything. The savings will be sobering.

Learn to live on cash. Create a budget so you know how much should be spent where.

Pay as you go. Set aside cash each month for expenses, suggests Christopher Platt, a certified financial planner with M&T Bank in Melville. Put cash in envelopes for groceries, gas, all categories. Forking over cash hurts more than whipping out the plastic. When the envelope is empty, the party's over.

Anticipate emergencies. It's always something, right? Start or shore up your savings to pay for emergencies, says David Flores, a certified consumer credit counselor with GreenPath Debt Solutions in Jericho. Pay yourself first.

If you must, keep one card. Use it only if necessary. Ideally, pay it off immediately. Ask your lender to reduce your spending limit.

Follow the 24-hour rule. If you want it but don't need it, wait a day; you may change your mind.