The very first step to getting your debts under control is to get all you paperwork organized. Unless you know how much money you actually owe and how much you are supposed to pay out every month, and what kind of interest rates you are paying, and the amount of minimum monthly payments that are required from you, you have no chance at all of ever getting on top of your growing mountain of debt.

The next step to getting your debts organized is to make a budget. Figure out your monthly income from all sources and subtract from that the absolute essentials like your mortgage or the rent, telephone bill, utilities and stuff like that. This is where the objective, levelheaded adult in you has to take control of the situation and say no to $6 morning lattes and maybe many other little luxuries that you have grown accustomed to.

If it really is crunch time and you are close to being overwhelmed then you have to get serious. Extras on your cell phone can be a money eater. Check your last few months bills. You may be spending what amounts to a credit card payment on texting. What about cable or satellite extras? You may have to choose between extra movie channels and a debt reduction payment. Is public transportation a good option for you?

Whatever you have left over is everything that is available to get your debts under control.

Every expert will tell you that the first thing you have to do to get your existing debts under control is to stop creating new ones. Stop borrowing. Keep your lowest interest credit card aside for emergencies and put all the others in a lock box so that you never see them again without pushing aside boulders and fighting firebreathing dragons.

Once you know how much you owe and how much cash you have two work with every month then contact all your creditors and try to get their interest rates lowered. If presented with a choice between getting payments with a lower interest rate and no payments at all they may become more accommodating. Target the most costly creditors first, especially the credit cards that continue to charge you over limit fees as these can add a significant amount to your debt load. If you are successful at just getting these extra fees knocked off your bill you’ll be in position to take care of their bill and to also pay down some other things more quickly.

After you get your budget under control then you can start to manage your credit rating. It will save you tons of money. Fix My Credit Report

Article Source: When Will You Get Serious About Your Debt Load