Managing Debt - Get Help With Debt

Have a look at your financial picture

Grab a pencil and a pad of paper - make sure the pencil has an eraser.
You will want a calculator, too.

Divide one sheet of paper into 2 columns

List all of your monthly income - sources and amounts - in one column.
In the 2nd column list any money assets you have - ie. savings, cashable bonds, cash in the coffee can, all of it.

Divide another sheet of paper into 3 columns

List all of your monthly household and maintenance expenses in one column.
In the 2nd column list all monthly loan payments - ie. cars, mortgages, student loan, repay loan from Aunt Annie, all of loans.
In the 3rd column list all of your credit cards and the amounts owing for each credit card debt and an beside each balance owing write the minimum monthly payment.

Doublecheck your finances and debt lists

Take a little break, have a cup of coffee and sit back and look at your lists, is that everything, is each finance and debt list complete. Don't forget any birthday money that you know you are going to get. Don't forget there's car insurance next month or medical insurance coming due. (divide such amounts by 12 and put them on your household expenses list)

At this point one of two things is going to happen - you are going to realize that you are coping - that the monies in are covering all of your financial obligations, even if there is not an attractive amount of disposable income after all the monthly debt is cleared or you are going to realize beyond a doubt that there is a shortfall between the two.

If you are managing, but struggling, make a hard determination - let's look at those credit cards. What kind of debt are they packing? Dinners, lunches, extra's?

If there is a shortfall and there is not a reasonable solution at hand then consider a few things - can some of those expenses reasonably be trimmed away, can you dispose of any of the assets (ie. a 2nd car) and lower your payments, lower your overall debt.