Are you finding it more and more difficult to pay your bills every month? Getting your finances under control and being sure to have enough money to meet your monthly obligations starts with managing your debt. Vivix Credit Solutions also points out that by organizing and paying off your debt, you improve your credit score. A good credit score enables you borrow in the event of an emergency or if you need money for a major expense like a new home or a car.

It’s not difficult to get your debt under control, but it takes determination and discipline. Here are the steps Vivix Credit Solutions recommends:

Make a list or create a spreadsheet of all your monthly household and personal expenses. The list should include expenses billed to you each month and others like gas, groceries and entertainment. Include your monthly mortgage or car payment in this itemization, even though they technically are debt, Vivix Credit Solutions says.

Make another list of all your debt payments in the order of the amounts owned with the highest at the top. With these two lists, you should have a good handle on your expenses. Compare your monthly outgoings against your total income, which may come from one or several sources.

If your total revenue exceeds your monthly expenses, start saving the extra money. If your expenses exceed your income, put a plan together to pay off your debt. Tackle the debt with the largest interest rates first.

There are several ways to go to go about paying down your debt. Vivix Credit Solutions offers these suggestions:

    Arrange for overtime, use bonus money or take on a part time job to get additional income
    Establish a debt-only checking or savings account
    Use your savings account to pay off the debt, especially loans with the highest interest rate
    Trim your monthly budget starting with at least 15 percent off all of your expenses
    Consolidate credit cards into one lower rate card
    Try to negotiate a lower interest rate with your creditors

Make good debt management a habit

Debt management doesn’t end with paying down your debts or evening paying them off, Vivix Credit Solutions emphasizes. Good debt management is an ongoing process to manage your money better and avoid incurring new debt as much as possible. To do this:

Continue to track your debt: Maintain your spreadsheet or list of all your debts and track your payments each month.  Be sure to meet regularly scheduled payments.

Aim to use cash: Carry only cash and avoid the temptation to use a credit card.

Use credit cards with care: Use credit cards only for those items you know you can pay off, says Vivix Credit Solutions. Also try to pay off the balance each month so you don’t incur the huge finance charges and interest.

Comparison shop for loans: If you must borrow, then compare loans to find the best rates, whether you are borrowing from a bank or a finance company or a getting a new credit card.