As the outlook for the economy becomes brighter, consumers are becoming more confident in their financial situation and less cautious with their spending. This changed perspective can lead to reckless consumer spending, and consequently more credit card debt.

While spending more than you make is usually unsustainable, sustainability depends on your income, expenses and other personal circumstances. A recent article on the Equifax Finance Blog, “Four Important Steps Toward Paying Off Credit Card Debt,” presents everyday steps that might help you better control your finances and manage your budget:

1. Asses your current situation. You won’t know where to begin handling your economic situation if you don’t know the details of your current financial standing. Collect all your financial documents, gain access to a free credit report and make a list of all your debts. The list should include student loans, auto loans, credit cards and any other personal debts you may have.
2. Know your savings potential. After you’ve tallied up all of your debts, the next step is to figure out how you can make them disappear. Evaluate your monthly budget and subtract from your income your fixed daily living costs, such as rent, utilities, insurance, childcare, commuting costs and groceries. Once you figure out how much your fixed costs are, you’ll be able to discover how much you could potentially change your spending in order to knock out your debt.
3. Devise a plan. Find a way to approach debt payment that will work for you. The “snowball” strategy involves paying the debt with the smallest balance first. The high-interest debt strategy starts by paying the debts that carry the highest interest rate first, and the extra income for a specific debt strategy prompts you to take a second job that’s income will strictly go toward debt payment.
4. Look for ways to lower your costs. Refinancing your mortgage or automating your student loan payments may lower the interest rate. If credit card spending is your biggest issue, you may be able to negotiate with your creditors to get a lower interest rate or create a reasonable payment plan.

Reducing debt isn’t always painless, and it usually isn’t easy. It takes hard work and dedication, but it’s possible and will give you financial freedom like you’ve never experienced before. If you are looking for advice to help you get out of debt and configure a new financial plan, be sure to read the full article on the Equifax Finance Blog for more information on how to take the next right step.