According to recent data, credit card debt jumped 12.3% in April, its biggest gain since November 2001. The jump pushed nationwide credit card debt to $8.8 million.

Credit cards, of course, aren’t necessarily a bad thing, assuming they are used responsibly by consumers who pay off their balances each month. Credit cards can also be valuable for individuals seeking to develop a track record of managing debt in order to shore up their credit ratings.

Less fortunate users, however, may face the oppressive burden of paying interest rates as high as 17% or 18% on unpaid card balances.

At that rate, compounding of interest can cause debt burdens to quickly escalate beyond manageable levels. Paying off such high levels of debt can cause consumers to postpone making contributions to their retirement plans or other long term savings programs. What’s more, credit cards are typically used for consumer items that, unlike houses, have no potential for gaining in value. Unlike mortgages, furthermore, credit card debt cannot be deducted from income for tax purposes.

On one hand, the rise of credit card debt could signal that consumers are becoming more optimistic about the economy, but a less encouraging scenario may exist. That is, with stagnant wages and considerable inflation for food prices, Americans may be relying on their credit cards to get by.

Either way, the trend is creating challenges for financial advisors to educate their clients on debt management and the need to follow reasonable budgets. With that in mind, the increase in credit card usage is an attractive opportunity for advisors to strengthen relationships with prospects and existing clients by helping individuals avoid pitfalls associated with consumer debt.

When mentioning the trend of growing credit card debt, it is important to be prepared. For example, advisors should be able to show financial projections of how quickly credit card debt can grow when high interest rates are charged. The projections should also show what portion of a balance is attributable to high interest rates and how long it will take to eradicate credit card debt depending on the size of monthly payments that individuals may make. To strengthen investors’ appreciation of the burden of credit card debt, advisors may want to also show how a certain amount of debt, if invested instead in a tax deferred account, can grow over time.

During presentations, advisors should emphasize that individuals should always make timely payments while focusing on paying down debt with highest interest rates first.

Advisors should also be prepared to help clients avoid the need for financing their day-to-day expenses with credit cards. The best way to do that, of course, is to help individuals develop budgets. That way, clients will have a clear understanding of how much they can spend without running up excessive credit card balances.

Budgets can also help clients cut their expenses in order to free up money for paying off existing credit card balances.

When forging a budget, advisors can also help clients find ways to cut their expenses so that they will have enough money left over each month to fund their retirement plans, college tuition savings programs, or other long-term savings programs.

For advisors, being sensitive to credit card issues can help clients avert financial disaster while at the same time helping to differentiate services from other advisors. In other words, providing education on credit cards can help clients feel that they are valued by an advisor who has their best interests in mind.