Most people don’t keep in mind how much they spend. A little money spent here and there does add up and it’s an awful shock when you find out how much money is missing in your account. So if you want to get back on track, the first thing you have to do is get rid of your credit cards. Yes, that’s a hard sacrifice but it has to be done. Most people don’t know that credit cards are the number one factor that leads to debt. You may feel that you can’t live without a credit card but the truth is, you can.
Now you need to organize your spending. The best way is to always see how much money you have. Start by getting different jars and labeling them. There should be a jar for groceries, transportation, clothing, and entertainment. You must see how much your income is and divide the money according to your needs. You should also make a jar for savings because you need to start saving up in order to repay your debt. Only use the money in the jars and not more. That way, you can keep yourself in check from spending your money on useless items that you don’t really need.
If you rigorously stick to this plan, you will slowly be able to accumulate more and more money and begin repaying what you owe. You will also realize that you might have more money left over from your jars than you thought possible. When people see how much money they have, they are less inclined to spend it on “stuff” and more inclined to use it for more useful things. When you have a credit card, you lose sight of what you need and what you want.