Dawn Warfield was feeling financial pressure from all sides. An expensive divorce, an expanding business, and living beyond her means quickly transformed into $80,000 worth of credit card debt. Dawn was using her 17 personal credit cards to maintain her lifestyle after separating from her husband, as well as to grow her video store rental business. She continually transferred balances to the card offering the lowest rate. As Dawn says, this intricate credit card shuffle was exhausting because the rates (which ranged from 6% to 33%) were always changing and it was impossible to keep up.

The basic problem: A series of life changes hit all at once, and credit cards are a convenient way to pick up the slack.

To avoid this problem: An emergency fund is key to help you survive financially during periods of upheaval. If you suspect a major life change on the horizon, start looking for ways to cut back so you rely less on your credit cards. If you get into too much debt, follow Dawn's lead and be proactive by talking to creditors.

Additional resources for people who are in debt because of major life changes:

• Keeping Finances Afloat During Divorce
• Is the Balance Transfer Game Over?
• National Foundation for Credit Counseling