Managing your debt carefully can enable you to pay it off and avoid more serious financial problems like bankruptcy. The simple rules for managing debt are to write down each debt you owe, the total amount of debt owed and the total amount you can afford to pay each month.

To figure out how much you can afford to pay each creditor you need to start with how much money you are brining in. Write down exactly what you are spending your money on each month. You can use this information to create a budget.

First write down the necessities: food, electricity, shelter, etc...Subtract the amount you must spend for these from your income and what is left over is the amount available for paying off debt. Each creditor should receive the minimum monthly payment, so subtract that from your total income as well.

Now each debt will be at least kept up-to-date. Identify the smallest debt and use any extra money in your budget to pay this debt off. As soon as this smallest debt is paid in full, begin focusing money on the next smallest debt.

Eventually, youall find that managing your creditors really isnat that hard. With a little planning and calculations, you can easily figure out who you owe what to, and pay each down to zero little by little. Keep on top of your minimum monthly payments, and you wonat be stretching your budget too thin.

If you have trouble figuring out what your budget should be, seek some household budget help. Look for assistant on the internet, in credit managing agencies, even your local bank branch may be able to help you find how to balance your income and your financial responsibilities.

Many banks also offer a form of online banking that makes managing your creditors online a snap. See if your bank offers online banking, and you may be able to pay all of your creditors at once, right from your computer. Whatever method you find that works, stick to it - bankruptcy is definitely something you want to avoid!