Live a more frugal life

We live in an excessive time. Everyone needs to have the latest iPod, HD television, or Blu-Ray player. Unless you have cash coming out your ears, there’s no point in making an elaborate expense one day and regretting it for the next 6 months. Learn to live a simpler life and your credit problems, with some work and dedication will soon go away.

Video: Live simpler -- and better -- by spending smart

Make—and stick with—a budget

It’s much harder to make large expenses on a whim if you make a strict budget and keep to it. Forget Quicken; all you need is a pen and paper, and within an hour you can figure out what you need to be spending your money on. You’ll also see how much you can afford to spend on luxury goods. Know what you’re getting into with the next shiny display.

Video: Gain control of your finances by sticking to a plan

Find ways to cut spending

Think of all the ways you can figure out to reduce your regular spending. Will an item you need be discounted in another couple of weeks? Are there any services you use that are no longer essential? Can you replace some brand name groceries or pills with generics? There are a number of ways to cut in your life; it’s up to you to find them.

Learn to spend more carefully

How much of what you buy do you actually “need” as opposed to “want?” Do you go into a store intending to buy one thing and walk out with three things? Learning your spending priorities will prevent you from piling on unnecessary debt. Your credit card bill will thank you later.

Look for ways to increase your income

Do you have a free moment that you can spend doing an odd job? Is there a hobby you have that you can make a little bit of money off of? Can you teach an acquaintance or relative a skill that they should have? You should always look to your strengths to supplement your income, no matter what your day job.

Avoid boredom

There are few moods more dangerous to your bank account than boredom. When you’re bored, you’re more likely to wander into that stray shop and buy that $20 universal remote you think you need. By staying active, you avoid making these purchases—saving you thousands a year.

Reuse things you normally throw away

Why do you need garbage bags for your wastepaper bins when your grocery bags work just as well? If you’re just printing out a document for yourself, can you reuse the other side of the paper for printing? So many things we normally throw away have the chance to serve another purpose in our daily lives, and can help cut costs tremendously—and make the world a little greener.

Stay Positive

Getting into debt can seem like a black hole with no way out. But if you turn your thoughts from “how did I get to be in such debt” to “how can I improve my wealth,” you’ll stop loafing and make the progress you need. Everyone’s human. It’s how we overcome our mistakes that define us.

Don’t pile onto your debt

What’s the worst way to get out of a hole that has gotten unmanageably deep? Keep digging. It may sound simple, but it’s easy to forget: if you already have overwhelming debt, considering putting the credit card back in the wallet with your next purchase and taking out cash or your debit card.

The last resort; blow your cards up

If all else fails, there’s one way to reduce your credit card dependence: Get rid of your cards! Rip them up, burn them, put them in the freezer—just get rid of them until you’re out of debt completely.