First, cut up your credit cards and don't use them again until you've regained control of your situation! Then create a budget for yourself and your family. Be realistic and totally honest in your appraisal of what you really need to spend money on, and how much money you're bringing in every month. Make trade-offs wherever you can to bring the income and expenditure columns into agreement. And don't forget to include saving, if it's at all possible.

If you're already in deep, contact your creditors. They'll actually appreciate your effort, since most folks turn and run scared when they begin experiencing financial difficulties. Tell your creditors what you can pay, but be honest and then stick to that proposal. You'll find that they're generally quite willing to make special arrangements to help you regain control of your financial life.

Try to work out repayment plans with your creditors before they turn your account over to a collection agency. That means they've given up on trying to get their money from you. If your account has gone to an agency, there are Federal regulations that prohibit them from bothering you excessively, threatening you, or making false assertions in order to collect your debt. Even when you've that far in arrears, you still have rights.

Regardless of where you are financially, it's worthwhile to contact a credit counselor for help and suggestions on how to approach your problem creatively and responsibly. Many of them can help work out deals with your creditors that you might not have been able to accomplish on your own.

A word of caution about credit counselors: never pay a monthly fee to a counselor for their services, and never believe that someone can repair your bad credit in a simple, easy way. It can be dangerous, both for your pocketbook and from a legal standpoint, and the repercussions can be severe.

If you're simply too far in debt to get back on your feet again, bankruptcy can help, but it should always be your last resort. A bankruptcy will stay on your credit report for seven years, and can affect your ability to get loans and credit cards for a long time to come.

Nearly everyone gets into financial trouble at one time or another, but if you face your own money problems head-on, you can regain control of your financial life.