Know your debts. Are you clearly aware of how much owe your creditors? Surprisingly, many consumers are not even aware of how much they really owe their creditors. When was the last time you checked on your credit report? Your credit report contains all information about your finances including all payments you've made and all unpaid balances you owe to each of your creditors. If you want to do something about your debt problems, start by examining your credit report.

In some cases, inaccuracies, false information and fraudulent charges can damage your credit. Are you sure that all charges in your account are correct? Did you really made the purchases that are charged to your credit card account? You can't be sure until you've obtained a copy of your credit report from the three major credit bureaus.

Study your current financial capacity. The only way you can get out of bad credit is by paying off your debts. How much can you afford to pay towards your monthly repayment? In order to create an efficient repayment plan, you need to know exactly how much you earn each month and what percentage of your monthly salary you'll use in paying your debts.

Calculate your monthly budget. How much do you need for your monthly budget? This budget should include all your expenses, including your food budget, transportation allowance, utility bills, personal expenses and miscellaneous costs. List everything down and total the cost so you can have an exact idea on how much you need to take from your salary. Can you make adjustments on your expenses? In order to pay your creditors more quickly, changes may need to be made on your spending habits and lifestyle. Be prepared to start making sacrifices so you can focus on making your repayments.

Stick to your plan. After creating your repayment plan, be sure to follow it strictly. If you have a family, let each of your family members understand about your repayment plan. Encourage everyone to do his share. The cooperation from each member of your family will certainly contribute greatly to your efforts to take control of your debts.

Pay off your high interest debts first. If you owe different creditors, know which ones impose the highest rates of interest and start paying them first. This way, you can avoid your debts from continuously accumulating. By getting high interest debt out of the way first, you can save a great deal of money on paying additional interest. Consider transferring your high-rate credit card balances to a credit card with zero interest rate. Most credit cards offer the zero APR as part of their introductory promo which can last from 6 months to up to a year or more depending on the credit card issuer. Do your best to completely pay off your balance before the 0% APR expires.