After realizing I was approaching $200,000 in credit card debt, I finally faced my financial habits. You can learn from my experience.

Have you ever borrowed from one credit card to pay another? I certainly did. I was carefree, enjoying life, and never hesitating to join friends on spontaneous trips, regardless of my budget.

This reckless spending resulted in mounting debt that I chose to ignore, hoping it would resolve itself. My wake-up call came when I confronted my financial situation, but by then, I was $187,000 in debt.

Don’t let it get that far. Regardless of your current balance, transforming your credit card habits is achievable if you commit to understanding your finances. Here’s how to get started.

Assess Your Financial Situation

Begin by collecting all your credit card statements and tallying your total debt. Divide that number by 12 for a monthly payment estimate. Can you realistically afford that amount after covering living expenses and other obligations?

If that figure feels overwhelming, it’s a sign you’re overspending with credit cards. Instead, try dividing your total debt by 24 or even 36 months to create a manageable repayment plan.

If payments still seem daunting, start small. Consider paying at least $20 a month while refraining from further credit card use until you can pay the balance in full monthly. Changing your habits requires making different choices.

Stop Focusing on the Drama

With credit card debt reaching record heights in the U.S., it’s easy to get caught up in negative narratives. Instead of dwelling on your debt, shift your focus to actionable steps. I took on multiple jobs rather than complain about my situation.

I accepted every opportunity to earn extra income, regardless of how I felt about each job. My only goal was to find ways to increase my earnings and chip away at my debt.

Cultivate New Financial Habits

Many of us are taught that money’s worth lies in spending or saving for later use. How often do we clear our credit card balances only to think, “Awesome! Time to spend that $10,000 limit again?”

Shift this mindset. Embrace having money and watch it accumulate. A helpful strategy is to create a 10% savings fund where you set aside 10% of every dollar you receive. This isn’t for emergencies or bills; it’s a way to acknowledge your value.

When I first initiated a 10% savings account, I was still in debt. It didn’t seem logical, but after several months of saving, my financial anxiety diminished, and my relationship with money improved.

Invest in Lasting Purchases

Once you’ve managed your debt, consider using your credit card for meaningful purchases. Start with something like a silver teaspoon for your coffee. Research the price of silver and find a spoon for less. Discover items that hold intrinsic value and enrich your life. If you prefer non-material options, consider subscriptions to publications that nourish your knowledge.

Make Your Card Work for You

Having a credit card isn't inherently bad. It can be a powerful tool if used wisely. I now leverage my credit card for various expenses, accumulating travel miles each month. By paying off the balance, I often earn enough points for upgrades on flights. Think about how you can benefit from your credit card.

Keep in mind, this isn’t financial advice. However, these practical strategies can help you shift your money habits and perspective, so give them a try and see how they transform your outlook.