Analysis and Budget

• List the money you make each month and the source. List your fixed expenses or other items that you pay every month. Use your checkbook to see what you are spending on variable expenses like entertainment, clothing and recreation. List your credit card debt with each interest rate separately, so you can analyze this segment of your expenses. List items that are quarterly payments, semi-annual payments or yearly payments and the month these expenses come due. Create a monthly budget starting with the fixed expenses such as your mortgage, car payment and utilities. Budget for the essentials, including food. Leave off non-essentials until you get a grip.
  
  

Credit Card Debt

• Contact your creditors and discuss the interest rate, the payments and other details of each credit card. Ask for help with a lower rate of interest. Ask for suggestions and assistance. Write out the name of the person you talk with and all reductions or agreements you make. Organize your credit card debt list with the highest interest rate first. Calculate minimum payments for all cards. Make it your goal to pay the highest interest card as soon as possible, so apply any money available to that card. Once you have that card paid, work with the same amount of money and move down your list. Pay the card with the next highest interest first. Contact the company holding your student loans and ask for a deferral or a payment plan, based on your current income. You must pay a student loan backed by the federal government, but you may be able to delay payment.
  
  

Secured and Unsecured Debt

• Secured debt holds the item as collateral. The loan company secures car and home loans with the car and the house. The contract allows the company to repossess your car or foreclose on your house if you do not pay. You may purchase furniture with a secured loan as well. If you need the item for your work or well-being, pay these loans first. Medical bills, credit cards and signature loans have no collateral. Bill collectors for unsecured debts can hassle you, but they cannot repossess your items. A common error in refinancing or consolidating loans is to combine your secured and unsecured debt. Financial analysts urge that you not trade unsecured debt for secured debt. For example, do not roll your credit card debt into your mortgage on a refinance.
  
  

Consumer Credit Counseling

• If you cannot solve your financial issues alone, you may schedule an appointment with a credit counselor. Many of these services are free, but be cautious. Some are non-profit, but others charge fees for services. If you have difficulty paying your house payment, this may entitle you to a housing counselor for free. A credit counselor may encourage you to sign up for a debt management plan where you give the company your money and it distributes payments. Make certain you are dealing with a legitimate company. Do not agree to debt settlement where you pay significantly less than you owe. This may affect your credit for years.