Now that Christmas is over, many people are beginning to receive bank statements and credit card statements and wondering, “What happened?” Even some with the best of intentions just could not seem to reign in the “Spirit of Giving” during the joyous holiday season. It is a great thing to give, but it is an even better thing to give knowing how much you actually have to give. Borrowing money you don’t have makes it much too easy to overspend. Here are some ways you can begin to eliminate the debt you already have and avoid taking on any new debt.

1. Consolidate your credit cards. Try to put all of your debt onto one card so it can more easily be watched and controlled.
2. Cut up all credit cards not in use. These are just a temptation. The key is to always be realistically thinking, “How will I pay that back?”
3. Make your credit cards harder to use. Leave them at home so that you have to return home in order to use them. I heard a trick once that said to put your credit cards into a container, fill it with water, and freeze it. Then you at least have to think hard about a purchase while they are thawing out.
4. Make a budget. Not just suggestions for how much to spend on things, but a way to hold yourself accountable to not going over. There are many good ideas out there: software, envelopes, and just plain, old pencil & paper.
5. Keeping track of your finances. If you don’t know how much money is in your bank account, you’ll never know if you are going over budget.
6. Pay over the amount as soon as possible. Repayment of loans is usually figured to pay much of the interest and small amounts of principal in the beginning so that it takes a long time to pay down the loan. If you can try to pay even a small amount over the payment each month, the debt will disappear even faster.
7. Set goals and reprioritize frequently. Reevaluate your financial situation throughout the year. Keep moving forward and refuse to go backward, even if it means waiting in order to pay cash for the new washing machine.
8. Make do or do without. What?! Can you imagine a society where we didn’t take the first opportunity to run to Target as soon as we think we need something? I’ll bet each of us has a pretty good substitute right in our own homes without having to spend a penny.
9. Start saving. A nest egg will prevent future needs to pay for things like car repairs or other large expenses.
10. Make up your mind. I used to put things on the card at the end of the pay period and tell myself that I would pay it back when I got paid. It’s never easier then. Eventually, I would have a couple thousand dollars on my credit card and feel like it was an insurmountable amount. When I determined that I would NOT use my credit card no matter the circumstances (unless extreme emergencies), I have stayed within my budgetary limits ever since.