This month's Inside Track from Champion Mole

I’ve spent my life avoiding traps. Dodging those nasty metal teeth is a way of life for me.

It’s my smooth, silky skin they’re after. But here’s some unsuspecting traps you might fall into.

Those chaps at the Fool.co.uk have identified a dozen crackers - and I think they’re pretty ferocious. The traps are fiendishly designed not only to heap misery onto people in debt, but are also devised to ambush folks who used their cards sensibly.

So here they are:

1. The Five Pound Card Trick

Instead of paying a minimum percentage of a balance each month, some credit cards now set the minimum monthly repayment at the monthly interest, plus premiums for payment protection insurance, plus fees, plus £5. The upshot is that your outstanding debt is whittled away at just £5 a month. Naughty.

2. Negative Payment Hoax

The least expensive debt is paid off first, meaning that the more expensive ones continue to accrue more debt interest for longer. Its like trying to run up a down-escalator, which will leave customers out of breath and out of pocket. Breathtaking!

3. Balance-Transfer Con

Watch out for lenders that class balance-transfer fees as a purchase on 0% balance-transfer deals. This means the fee will not come under the 0% deal, but will instead be subject to interest at the purchase rate. Noughty and not nice!

4. Too-good-to-be-true APRs

Only the most creditworthy consumers will ever get the lowest advertised interest rates. Although current rules state that two out of three borrowers must be offered the typical APR, this only applies to approved borrowers, not the number of people who apply. Now you know.

5. Well done! Your Credit Limit has risen.

A credit limit is not a debt target, though it is tempting to see it as such. The greater your access to credit, the greater may be the temptation to spend. Too much.

6. The Insurance Maze

Insurance comes in various guises, not just the high profile dodgy ones. Steer clear of rip-off Payment Protection Insurance (PPI) and Credit Card Repayment Protection (CCRP). Don’t get lost in this one.

7. Late-payment Sting

Late payers not only face penalty fees but banks can also rescind any 0% deals you may have signed up to. Eat your heart out, Robert Redford.

8. Monthly Interest-rates ruse

Don’t be fooled by monthly rates: a monthly rate of 1.5% might not sound high, but it compounds up to a whopping 19.6% APR. Don’t lose interest in this ruse!

9. Annual-fee Manoeuvre

Credit card fees are making a comeback, with fees from £10 to £275. Watch out!

10. Cash-withdrawals Wheeze

A typical charge is 2.5% of the withdrawal amount and a minimum charge of £2.50. So, if you withdraw £10, you’ll be charged £2.50, which is equivalent to a 25% charge. Withdrawals also attract interest at even higher than standard rates for purchases. Outrageous stuff, I think.

11. Credit-card Cheques Trap

Cheques sent to you by credit-card companies attract interest at the standard rate for cash withdrawals, plus a handling fee of up to £50. Also, like cash withdrawals, you don’t get an interest-free period. Ouch!

12. Gambling-fee Fleece

Card firms are increasingly cracking down on punters who use their plastic to make online wagers. Previously, card issuers treated these transactions as purchases, but you’re likely to find that they're now treated as cash withdrawals. That's poor odds.

So there’s what the guys from Fool.co.uk are saying: David Kuo, Head of Personal Finance at Fool.co.uk, says: "Credit-card companies are increasingly targeting rate tarts and convenience users. In other words, they are picking on sensible customers who always pay their outstanding credit-card debts in full.

"The tactics used include the magically appearing annual membership fees, charges for pseudo-cash products such as credit-card cheques, and hidden catches in balance-transfer deals," says David.

"The best way to combat these offensives is to read any material sent to you by your card provider to ensure that no changes to the terms are made without your knowledge. Changes can happen at any time. I suspect the next move may be the sliding credit line where customers’ credit limits are lowered once they reach it.

"Credit-card customers are regularly reminded by banks to take care against fraud. Ironically, the people that consumers need to be protected from most are people they are expected to trust - the card issuers themselves."

So there you have it. Traps, traps and more traps. The Mole used to them - but I don’t suppose you’re all watching out for those big sharp teeth slamming shut. But I have to admit to you, that’s a Mole’s worst nightmare.