Loaded up on credit cards? If you’re struggling with debt, you might feel like it’ll take forever to pay off.

Your credit limit can be spent in a split second, but it may take years to get that balance down to zero. How about saving money? Forget it, right?

It seems almost impossible to save when the money you owe keeps looming over your head.

Here are 5 tips to get your finances back on track and get rid of that credit card debt once and for all.

5 Ways to Get Your Finances Back on Track

5 Ways to Get Your Finances Back on Track

Assess Your Income

Look at your overall income and assess just how much you’re getting. Try not to lie to yourself, and don’t boost your numbers. It won’t do you any good. Try to be as accurate as possible.

You’re right, it’s tough, because you will have to face your spending habits, but it is crucial to do so. Also, it’s best to look at your income after tax to make sure you only include the amount that you actually get. This will help you avoid overspending in the future, making credit card debt even bigger.

Budget Your Income

Now that you know how much you get, it’s time to budget it up. You need to make sure all your necessary outgoings are covered before you do anything else.

With the disposable income, you can budget on other elements. Easier said than done? Use some apps to help you out! You can try Goodbudget (iOS) or AndroMoney (Android obviously). It’s always easier to keep track if you have your budget at your fingertips

Clear One at a Time

Pick the credit card debt you’re going to clear first. Doing it one at a time helps you remove the debt quicker, so you spend less money on interest.

Another reason to clear one card at a time is the satisfaction you will get every time you bring one card to zero. It’s like a milestone that will encourage you to move on to the next. A good idea is to start with the card that charges the highest interest. Just make sure you keep paying minimum repayments on other debts.

Save a Little

Don’t forget to put a little money into a savings account. It won’t be much right now, but you need something to fall back on just in case the worst happens. Once your debts are clear, you’ll be able to save more.

By saving a little every month you also develop a good habit of saving up. Even if it’s only 20$ a month, repetitively putting money aside will become part of your financial routine. If you need tips on how to create a  habit, hit the link to read our article on the topic.

Reduce Your Limit

It’s tempting to spend everything on your credit cards. If you have big credit limits, you could soon find yourself struggling to make the minimum repayments. The best thing to do is reduce your maximum credit limit, so you lower the temptation. You don’t need it when your credit cards are only there for emergencies. Where possible, cut your cards up, so you stop using them as often.

You can get your finances back on track. It is not easy, it takes patience and determination, and sometimes even sacrifices. Remember It’s all about budgeting and clearing debts one at a time. If you want to take it further, I recommend reading How to Get Out of Debt, Stay Out of Debt, and Live Prosperously. The book is built on a simple 12-step program to help anyone who struggles with debt. If you’re coping with debt, there is no better starting place than this read.