CLARKONOMICS/RIP-OFF ALERT: New data shows that defaults on credit cards have skyrocketed. Just under 9% of balances have been charged off as uncollectable debt as of February, according to Reuters. That's up from 5% last year.

Are you facing a credit card balance that you can't seem to handle? Is it being compounded by a job loss?

You may need to go on food stamps. Food stamps are a necessary social net, unlike the bulk of the $787 billion stimulus package…but that's a discussion for a political talk show!

You'll also need to triage your finances. Paying your car note may be a higher priority than your housing debt. After all, most Americans need a car to go to job interviews. Credit card debt should be the lowest item on your totem pole of financial obligations.

Moody's is predicting the rate of credit-card default will rise from the current 9% to 10.5% in the next year. And therein is the rip-off. If you carry a balance on your card, you'll be punished with higher interest rates to indirectly pay for those who default.

You've probably heard the calls on the show about this. The increases on interest rates tend to be anywhere from 10 to 25 points -- even if you are a good payer. In bankspeak, this is known as the "implementation of yield-enhancing actions."

And there is no limit on how high they can raise your interest rate if you carry a balance. The highest we've heard of is 40%, but 30% is very common too.

So it's more important than ever to trim your budget and throw every last dollar you can at outstanding credit card debt.