Credit card debt can creep up on you before you know it, thanks to fees and interest that are subject to change (always for the worse) with very little notice. If you’re not in the habit of paying off your credit card balances in full every month, you could soon find yourself mired in debt that never seems to go down even when you make a payment.

Since you can’t close your eyes and make credit card debt go away, you’ve got to find a way to pay it off – the quicker the better. Many people take out loans to accomplish this. It makes sense; better to pay a single monthly payment at a low interest rate than to make several credit card payments each month, all at higher rates of interest.

But some loans are a bad idea. For starters, let’s take a look at home equity loans. They are often easy to obtain and offer low interest rates. But what if you take out a home equity loan to pay off credit card debt, only to find yourself falling behind on your loan payments? Now you’ve got more at stake than your credit score; you could actually lose your house.

If you’re certain you’ll be able to handle the payments, a home equity loan might be useful for paying off other debt. But be honest with yourself. If you think delinquent payments are a possibility, find another source of money that won’t put your home at risk.

Many people borrow against their retirement funds when they want to pay off their credit cards fast. This isn’t a good idea, either. For one thing, the more money you keep in these funds, the more they will grow. The more money you take out, the less growth potential the fund will have. 

Borrowing from your 401K might sound like a fast solution to credit card debt, but consider the consequences: it will be more difficult to keep up your retirement fund contributions while you’re also trying to repay the loan. And if you get laid off, you’ll have about 90 days to repay the whole loan before it gets taxed and penalized.

If your credit card debt can realistically be paid off in a year, try transferring the balance to a card with a 1-year introductory rate of 0% interest. You can also talk to your bank about a low-interest personal loan, and use those funds to pay off your credit cards.

Just paying off the debt isn’t enough; you also need to figure out how you got so indebted in the first place. Were you paying for urgent expenses like car repairs? Then you should set up an emergency bank fund to pull from when those situations arise. Were you simply living beyond your means? Stick to a good budget, and you’ll get everything you need without overspending on frivolous items. There are many ways to cover unforeseen expenses and little extras, but credit cards are a costly option.

One of the secrets of managing your debt load is knowing when to borrow and when to pay cash up front for purchases. As we’ve discussed before, some debt is good. When you’re making payments on an asset that will appreciate or retain its value, that debt is healthy. The problems set in when you start making high-interest payments on items that will quickly depreciate in value. Credit card debt falls into the bad debt category.

We’ve been taught to charge the things we want as well as the things we need. How many department stores offer us credit cards when we check out? Even smaller specialty retailers have credit cards now, and they’re eager to sign people up.

But almost anything you’d pay for with those credit cards should be bought with cash instead. Think about it: the clothing, appliances, and household items found in departments stores will decrease in value almost immediately. Then you’re stuck with interest-laden debt for items that haven’t retained their worth.

A better strategy is to put aside a portion of your income each month for incidental expenses. These are the miscellaneous purchases that don’t count as entertainment expenses, but don’t fall under your static monthly bills either. Always pay for incidentals in cash so that you don’t add to your debt. And before you sign up for department store credit cards, check out the terms and conditions; they might surprise you, and not in a good way. Store cards tend to have higher interest rates than regular credit cards.

A good rule of thumb is this: if something can be viewed as an investment, it’s okay to borrow money to make the purchase. Investments include things that will keep their value or even go up in value over time. A college education, for example, is something that will go up in value by opening doors to higher-paying jobs. A home increases in value as the house and surrounding land get developed.

Large appliances, furniture and housewares, though necessary and very useful, start to depreciate in value after their first use. For this reason, you should avoid borrowing money to pay for them. It’s not good to pay more and more for an item (payments plus interest) while the value of that item keeps going down.

On the other hand, big home improvement projects and other purchases that will add to the value of your home could warrant a loan. Just look for low interest rates and don’t borrow more than you need. Ideally, you’ll be able to repay such loans within five years.

We’re all feeling the effects of the credit squeeze. Many people are staggering their way through a financial balancing act that only gets harder month after month. They have to choose which debts to deal with each month, and which ones to delay. Sometimes they have to dip into their retirement accounts to meet their monthly costs. When that strategy isn’t available, too many people fall into the trap of making minimum monthly payments on their credit cards, only to use those cards to make ends meet. That’s not a sustainable solution. What will happen when the cards are maxed out?

When you find yourself choosing between your credit card payments, car payment, or the mortgage, it’s time to learn how to deal with your sticky debt scenario.

Scenario #1: You got laid off. Which resources should you tap for financial relief until you find another job?

Whatever you do, don’t touch your 401K. It’s a terrible time to pull your money out, since stocks are tanking so badly. Also, you’ll end up paying a steep price in fees and penalties.

Instead, draw on your ROTH IRA. Even if you’re nowhere near retirement age, you can withdraw money from this account, tax-free. Funds in a ROTH IRA aren’t subject to withdrawal penalties, even if they’ve only been in the fund for a short amount of time.

Also, apply for unemployment benefits as soon as possible. Every little bit helps when you’re between jobs.

Scenario #2: You can’t make your house payment now, and aren’t certain you’ll be able to in the foreseeable future. What should you do?

If you’re in this sticky scenario, you’re certainly not alone. Millions of Americans have found themselves crumpling under the burden of mortgages they can’t afford. Many struggling home owners don’t want to acknowledge the hard truth, but the solution is cut and dry: put the house up for sale.

This might sound crazy given the state of the housing market, but getting out from under this debt now can save you financial ruin in the future. Find a good agent who is dedicated to your cause. Read up on home selling and marketing tips. Also, contact your bank to explore short sale options.

Scenario #3: You just can’t pay the bills. If you’re forced to choose, which ones should you forego?

This is another tough choice, and one that will certainly have an impact on your credit score. But sometimes we have to make hard decisions. If you’ve got to default on a debt, let it be credit card debt. In the event that you have to declare bankruptcy, this unsecured debt can be discharged. Student loans can’t. 

Before you default, call your credit card companies to see if you can arrange a payment plan. Some credit counseling programs can work with lenders to get fees and penalties waived, on the condition that you don’t incur new debt until your old debt is paid in full. Whichever route you go, be prepared to kick your credit habit; additional credit card use will only dig you into a deeper hole of debt.