The average American family has a credit card debt of $7,327. Not only is this debt a burden, it means that thousands of dollars are wasted on interest payments. With so much conflicting advice about debt, it can be tough to sort the financial gems from the rough. Read on for five effective, no-nonsense nuggets of wisdom that will help you to reduce and eliminate debt.

Stop Being a Victim

Attitude is everything when it comes to debt. If you view your situation as never-ending or impossible to get out of, it’s going to be tough to solve your debt problems. It’s time to step up, own your debt and know that millions of people have gotten out of debt and so can you.

Embrace a Simpler Lifestyle

You’re going to have to make some pretty big changes when it comes to your spending habits. It’s true that everything adds up, so stop wasting money on small, unnecessary purchases. Ditch the morning Starbucks, prepare a packed lunch for work, and cancel that cable subscription. Luxury items and indulgences may provide temporary gratification, but they are not worth the sleepless nights.

Know What You Owe

Are you the type to throw away credit card bills before you open them? Does the thought of checking your balance fill you with fear? To eliminate debt, you need to know exactly where you stand with your finances. Luckily, there are hundreds of free tools, including software and smartphone apps, that make it easy to track where your money is going and what you owe.

Be Interested in Interest

Do you know what your credit card interest rates are now? You could be wasting money by paying unnecessarily high interest rates on loans or credit cards. A way around this is to transfer your credit card balance to a provider who offers 0 percent introductory interest rates. You can also consolidate your debt with a debt consolidation service.

Automate It

Missed payments wreak havoc with your credit score and often incur extra fees. Stop this from happening by automating your payment schedule through direct debits or regular bank transfers. Review the amount you pay back on a regular basis so you can adjust it if your financial status changes.

Take note of these important factors and incorporate them into your financial tool kit today. By taking steps to get a grip on your debt, you will feel more positive in all areas of your life.