Coping with debt

If you're struggling to pay your bills and have fallen into debt, your problems may seem overwhelming. But it's possible to get your finances back in shape. The first step is collecting all of your bills and writing down the total debt you owe. Then figure out how much you need to set aside from each paycheck to pay off your debts, starting with the one that charges the highest interest rate.

If you decide to work with a professional to assist you in managing your debt, a non-profit credit counselor can offer you a lot of assistance. A counselor will analyze your overall financial situation, including your income, any assets and the debt you're carrying. He or she may be able to help you work with your creditors to increase the amount of time you have to pay back, or reduce the amount of your monthly payments.

A credit counselor will also help you come up with a new spending plan to bring your finances under control. That might not sound fun, but the results are worth it.