Create a budget so you know exactly where all of your money is going. Keep daily records of everything you spend for a month and decide where you can cut or save. 

• Plan for large purchases such as appliances or a new roof. Don't forget to include birthday, wedding and holiday gifts. Put a fixed percentage of your income into a savings account each month to pay for such expenses. That way they will not be viewed as emergencies that throw your monthly budget out of whack.   
• Pay yourself first. Deposit a fixed amount each month into a savings account to provide a cushion in the event you lose your job or face an unforeseen emergency. That way you won't be forced to rely on credit cards. Many experts recommend that you have enough money saved to cover living expenses for up to six months.

Cut Up Debt

• Put the brakes on spending. Credit cards can drive impulse purchases, so leave them at home and use them only when necessary. Pay for day-to-day expenses and purchases with cash or a check.
• Get rid of most of your credit cards, especially if you've become reliant on them to pay expenses and are juggling monthly payments. Get the scissors and cut them up now, then notify the lenders to close your accounts. Keep just one card for emergencies.
• Consider transferring the balances from multiple cards to one new, low-interest card.

Another helpful idea: Pay off the lowest credit card balance first, then add that monthly payment to the payment of the next lowest card. For example: Card A has a balance of $300; card B has $600; and card C has $2,000. You can afford to send $50 per month on each card. When card A is paid off, you apply that $50 to card B, sending in a monthly total of $100 until it is paid off. You then add that $100 to payments to card C, sending in $150 per month until it is paid off.