Settling credit card debt is a noble goal, but here is some practical advice for the rest of us. First things first, consolidate! If you have more than one credit card, try to pay off the littlest balances first. If it looks like that may be a while out, look into transferring the balance to your credit card with the lowest interest rate. (Most banks are happy to give you a low interest rate for a balance transfer). Do what you need to, to make only one payment a month. It will un-clutter your desk, and help clear the fog in your brain.

Second. Lowest monthly credit card payments are not your friend! An evil ploy to pay back your creditors for the rest of your life, banks will set up your account so that your monthly payment and finance charges practically cancel each other out. If it is within your control, pay more than your minimum charge.

It’s recommended to have only one to two credit cards. The first is to build your credit and pay off the balance every month. The other is your rainy day fund; A card to turn to in case of a sudden, unplanned expense. The goal is to get as close to this as possible. Keep your goal in mind while paying off your expenses. As a rule of thumb, If you don’t have it, don’t spend it!

Use the system to your advantage. You are the customer, and if you are a good one, chances are the bank would rather keep you on and lower your interest rate than lose you to another institution. Reap the benefits. Get some free rewards. If you plan to use your credit card, add the rewards system to the now consolidated card to earn free gift cards, travel etc.

Remember spending fiends, there is nothing better than living within your means.

Keep track of your spending daily: A common problem that many people have is that they do not keep track of their spending on a daily basis. Where, most people will simply spend money and then wonder why they don’t have anything left. When this kind of situation occurs this means that they are more than likely overspending, creating financial holes in your budget down the road. To avoid this kind of situation you always want to keep an accurate total as to how much money you are spending on a daily basis. What you want to do is monitor your bank account on a daily basis by comparing what transactions have cleared versus those that are still pending. This will tell you how much you are spending consistently and will prevent any unknown surprises from coming up.

Stay consistent: The most important factor for budgeting is to remain consistent. It is through the consistent actions that you are taking that will have a huge impact on your financial future.

Clearly planning an effective household budget is an essential ingredient to building a strong financial foundation underneath you. It is through use the above tips that you can be able to take control of your finances today.