1) Go easy on credit card debt
If you are determined to get your finances in order, the best place to start is by getting rid of credit card debt. It starts off as a convenience, more of a stop-gap arrangement. You pay just the bare minimum amount and walk scot free. But as you well know, or will soon learn, there is no free lunch.
When you use your card, you pay for an item with money that is not yours. So basically you enjoy life on borrowed money. This instant gratification can put you on a slippery slope. Let's say you could not pay the last bill. You put up the cash for the minimum payment and revolve the balance. The bank says they will charge you interest at just 2.25% per month. What they fail to tell you is that it works out to an obscene 27% p.a. The longer you take to repay it, the more it eats into your disposable income, the more it hinders your savings potential, and the more money the bank makes.
If you have started revolving credit, it means that you could not afford to clear your monthly bill. And, it will not be just the debt that you are servicing. Every single purchase you make on that card will result in the interest rate being levied. The only way out is to stop using your card till your debt is cleared.