The interest just keeps piling up, and the amount they owe never seems to get any smaller. Does this sound like you?

If so, you need to pull yourself out of this vicious cycle of spending and mounting debt right now. Remember, there’s nothing “normal” about sinking deeper and deeper into debt. You probably know perfectly well that you have to stop using your credit cards before it’s too late. But let’s face it, that’s easier said than done – right?

It’s time to get tough with yourself and take some drastic action to clean up your act when it comes to personal financial management. So, what are your options?

1. Close your accounts
2. Cut up your cards
3. Make it hard to get at your cards
4. Get an accountability partner

1. Close your accounts

This might seem like the obvious solution, since it will definitely prevent you from using your cards. However, it is often not such a good idea. For one thing, you might need a credit card for emergencies, or to show when you are traveling and need to book flights, hire cars and hotel rooms.

You should also bear in mind that with some credit cards, the cardholder agreement states that the issuer can demand faster repayment if you close your account while you still owe money. Always check the fine print! Another important consideration is that each time you terminate a credit card account you lower your FICO score, or credit score. You never know when you will want to apply for a new credit card, auto loan or mortgage in the future, so make sure you keep your credit score as high as possible.

2. Cut up your cards

While this might work for some people, anyone who has ever shopped online knows that you don’t actually need a card, just your card number. So unless you have exceptionally strong willpower, cutting your cards in half is unlikely to stop you from spending when you are logged on to your favorite shopping sites. Also, you won’t be able to use your cards when you are traveling and need to hand over your plastic.

3. Make it hard to get at your cards

Some people think they can stop themselves from using their credit cards by freezing them in blocks of ice, burying them in the backyard or locking them in the safe. If this helps you kick your spending habit – great! For most of us, these methods just don’t work, though, since you can so easily carry on charging purchases to your accounts. And if you get really desperate to hit the mall, you can always dig up your cards, thaw them out, or whatever!

4. Get an accountability partner

What is an accountability partner? This is a close friend or relative whom you trust (more than you trust yourself, in this case) to help you control your credit card use. This person is meant to be a true friend and exercise some tough love any time you “slip” and try to make a purchase that isn’t absolutely necessary. So it’s a good idea to pick a person who is close enough to you that they feel comfortable giving it to you straight, and can be as strict as they need. Of course, it’s also best if your accountability partner is someone who manages their own finances sensibly and has no history of credit card abuse themselves.

Reduce Credit Card Debt

You may or may not want to close some of your credit card accounts (bearing in mind that your credit score will suffer). You should probably cut up your cards, however, leaving just one or two intact. Give these cards to your accountability partner and instruct them to only give them back to you if you can prove that you need a credit card because you are traveling, or if there is a real emergency. Since you will have to ask for the card and justify why you need it, you will likely not try to get it unless there is a good reason.

Of course, you would technically still be able to make sneak purchases online. However, there are steps you can take to make it more difficult, or at least more embarrassing when you do. A lot of credit card issuers can send email alerts whenever your card is used. So, you should arrange for your accountability partner to receive an email any time you make a purchase – and for them to call you to demand an explanation. Hopefully this will make you think twice before “cheating” and falling even further into bad habits. You can also do this even if you don’t give them your cards.

It can be hard to find the willpower to stop using your credit cards when you don’t have anyone keeping an eye on you. For most people, having a buddy to keep them in line is the best way to solve their personal financial management problems.

• How to Manage Payday Loans
• Personal Finance Articles
• Financial Websites

A payday loan could be just what you need when you are faced with a short-term financial emergency that your paycheck simply won’t cover.

 Imagine that a family member suddenly needs expensive medical treatment, or that the car you depend on to get to work requires urgent repairs. You don’t have enough money saved to pay the bill, and your credit card is maxed out. The bank won’t help you out either since your credit score is not looking too healthy right now.

Fortunately, as long as you have a bank account and a regular income, you can get a payday loan to tide you over until your next paycheck – provided they are permitted in your home state, of course.

It is important to remember that this is only meant to be a short-term solution to an acute cash-flow crisis, and not a way to supplement your salary on a regular basis.

Here are 5 Good Tips on How to Manage your Payday Loan if you must get one:

1. You need to know how to manage your payday loan responsibly, so that the fees don’t start to stack up and sink you even further into debt. Remember that you have to pay a new fee each time you roll over your loan (usually every two weeks), so the longer you borrow for, the more you have to pay. If you convert the fees on a payday loan (typically $15 per $100 borrowed, for each two-week period) into an annualized percentage rate (APR) you arrive at a hypothetical (and eye-watering) 391% interest rate on a year-long loan.
2. Mark your calendar so you know exactly when your payday loan is due, and plan ahead to put aside the cash you need to repay it. Aim to pay off the loan as quickly as you can. If you find that you do need to extend, try to borrow a smaller amount the second time around – this will keep the interest costs down. Each state has its own regulations about the number of times you can roll over a payday loan, so make sure you know the laws in force in your home state. Certain states have banned extensions altogether, and require that you pay your loan off in full at the end of the term.
3. You should be careful of taking on more than one payday loan at a time – in some states this is illegal in any case. The only possible exception to this rule is if you are due to receive a large sum of money that will cover the repayments and leave you plenty for your ongoing needs. In that situation, you might be able to justify borrowing from two different lenders if the maximum permitted loan from each is too small for your requirements – but never otherwise!
4. Make it your firm policy not to sign up for a loan unless you are 100% sure you can pay it back on time. If you applied for your payday loan online, when the due date comes around the lender will debit your bank account for the amount you borrowed plus the fee, unless you request an extension ahead of time. If you don’t have enough money in your account and the debit doesn’t go through, the lender might also decide to sue you – and that is a situation you want to avoid at all costs. Alternatively, you might be lucky enough to have an overdraft agreement with your bank, but remember that you will still be charged a hefty fee.
5. Lastly, make sure you only borrow to cover a genuine financial emergency that you cannot fund out of a single paycheck. No matter how easy it is to obtain a payday loan, don’t be tempted to get one so you can go on vacation or buy the latest gadget or fashion accessory. A payday loan is not a realistic way to solve a long-term financial problem either, given how quickly the fees add up. Nevertheless, as long as you manage your payday loan wisely you will find it to be a real friend in need.

• Is a Payday Loan Suitable For You?
• How Can I Get a Payday Loan?
• Personal Finance Articles
• Financial Websites