Credit cards ... the little plastic cards in your wallet that are so convenient to rely on when you are strapped for cash. While the convenience of having cards definitely makes it easier to buy items when you are running low on cash, the flip side is that credit card debt can drown the typical household, and statistics are showing that Americans are pulling out their cards more than before.

One of the reasons why credit card usage has been on the rise is the fact that homeowners are having a harder time using home equity to get a cash infusion into their accounts. As a result, they are looking to borrow money from somewhere, and more times than not, they are turning to credit cards.

The evil with credit cards is that once you start to use them to pay for your basic necessities like food and gas, you find that in the months to come you still can't afford your basic needs but in addition, your monthly bills are racking up like crazy due to your credit card expenses. It's a scary cycle that many families find themselves trapped in.

Just how much has credit card usage risen lately? According to the Federal Reserve, American credit card debt jumped by a pretty mind-bending 6.7% during the first quarter. To put that a different way, the current credit card debt of Americans is running at $957.2 billion. That is a pretty scary number if you take a second to think about it.

$957.2 billion. It's staggering. What is even more confusing is that this massive increase in credit expense is coming at the same time that over 30% of the banks in America have been tightening rules for issuing new credit.

In Atlanta the average person who contacted the Consumer Credit Counseling Service reported debt of $29,300. This is up from $25,700 this time last year. Definitely some tough times for sure.

The impact is already being felt by a large number of Americans in the credit reports. During February, credit card delinquency rates rose to 4.53%, which is now a 4-year high. It's the problem that we noted before ... once you fall behind it is almost akin to quicksand. You have to spend more on your credit card bills, giving you less money to spend on your needs, so you have to put more money on the credit cards. It's vicious.

Rising credit card expenses, falling savings rates, and cost of living expenses that are continuing to rise -- all in all, it's a perfect recipe for hard times to come.

So be careful, if you feel yourself falling behind, do what you can to keep your expenses as low as possible, and remember ... no matter what, always pay your minimum credit card balances. If you are going to use them, make sure you at least keep up with the minimums, or you will definitely regret it down the line.

Good luck!

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.