Digging out of debt is tough, but getting control over your finances can be empowering. A few simple steps can help you pay down debt, rebuild your savings and get back in control of your money.

Create a Budget

Make sure you have a kontroll over gjelden solid understanding of how much you earn and spend each month by creating a budget. You can use a free online or app-based budgeting tool to get a better grasp of your spending habits and pinpoint areas where you might be able to cut back.

Evaluate Your Current Debt

Once you have a handle on your monthly income and spending, determine how much you can afford to pay toward debt each month. If you can’t meet the minimum payments on your credit cards and loans, you may need to contact creditors and lenders to see about negotiating a different repayment plan. Be sure to do your research, as there are many companies that offer debt management services.

Start by listing your debts and the amount owed on each one. Next, prioritize your debts based on their interest rates. Begin by paying off the debt with the smallest balance, while continuing to make the minimum payments on all of your other debts. Then, move on to the next debt in line with the highest interest rate and repeat the process.

It’s tempting to splurge on a new item or a fun activity when you have extra cash lying around, but these types of purchases can keep you in debt forever. Unless you have an emergency fund set aside for unplanned expenses, it’s best to put any extra money toward your debt.