“A family member tells you they have maxed out their credit cards and are in financial strife. What do you say?”

I’d get really cross and let her have both barrels.

“Red card, Grandma! How many times have I told you? A thousand! There’s no more room left on your reverse mortgage and I’m not bailing you out this time.

“You can’t use it at the RSL to pick up dinner and a night on the pokies for all your Golden Girl friends! Now hand it over. Life ban. Naughty Grandma! VERY naughty!”

Of course, that’s the antithesis of who tends to get into trouble with credit cards. Gen Y has problems, but, gulp, us Xers are the worst.

There are two types of credit card users – transactors and revolvers. (I’m sure a simple psychological test could separate them.)

Transactors pay off their credit card each month and use the card to obtain points. They don’t pay any interest.

About half are revolvers, who don’t pay off their debt in full each month. They pay interest. Banks love them.

I’m not a believer in straight bailouts. If you bail people out, they come to expect it will happen every time. (Like Grandma.)

The right way to tame an out-of-control credit card habit is through education, sacrifice and hard work. Budgeting, paying down the balance and cutting credit limits as you go.

If you don’t have the expertise or time to teach your family member, then push them towards financial counsellors.

If the debts are particularly serious, then they might want to investigate a debt agreement.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.