Step 1:  Assess your situation
Does your credit-card balance exceed the national debt of Bolivia? What would a lender think of your debt ratio? Have you figured out how you got into this mess in the first place?

Debt Evaluation Calculator
First, find out if you're carrying too much debt.

 
Step 2:  Understand the psychology of spending
Do you spend too much? Find out if you have habits and attitudes that can lead to problems with spending and debt.

Why some people get into trouble with debt

Savvy Spending Quiz
What kind of spender are you? Take our quiz and find out.

Spending Analysis
My Accounts saves a history of your transactions for up to 90 days. You can assign categories to your transactions and then use our Spending Analysis tool to see where your money goes.
 
Step 3:  Create a budget
Effective debt management begins by taking a critical look at how you spend your money, then setting priorities. A budget can help you do both.

Budget your way to financial freedom

Budget Tracker
Create a simple monthly budget and save it on the Web. You can access your budget from anywhere and see how your actual spending compares with budgeted amounts.
 
Step 4:  Reduce your expenses
If there's little or nothing left over at the end of the month, you need to find ways to cut your expenses.

10 ways to find the fat in your budget

Strategies to reduce your debt

Get financially fit by changing your lifestyle

 
Step 5:  Find a low-cost credit card
Finding the best deals on credit cards depends on whether you carry a month-to-month balance or pay it off. Look for low-rate cards if you carry a balance, low fees if you don't.

Use the Web to shop for better deals

Lower your credit card fees

Hunting for hidden fees in the fine print

 
Step 6:  Consider consolidating your debts
Debt consolidation offers you the chance to lower your monthly payments, but there are drawbacks, and you could end up in worse shape financially if you're not careful.

When it pays to consolidate your debt

Debt Consolidation Calculator
Use our calculator to decide if you'd come out ahead financially by consolidating your debts with one lender.

 
Step 7:  Talk to a debt counselor
There are several nonprofit agencies devoted to helping people cope with an overload of debt. They're generally funded by creditors, so don't expect them to advocate bankruptcy, but they're basically on your side.

Credit counseling can help you help yourself

Debt Counselors of America has a great site with a live chat room open from 9 a.m. to 5 p.m., staffed with debt counselors who can answer questions and dispense advice. And for some dopey fun, check out the "DebtCam."

Consumer Credit Counseling Services has offices all over the country. Click here for a list of CCCS Web sites.

 
Step 8:  Work to repair your credit
As you work to get your finances in order, make regular checks on your credit report to be sure that a creditor doesn't say something about you that's inaccurate or out of context.

Beef up your credit score in 5 steps

The 7 guaranteed rights you have as a debtor

You can order a credit report online from Equifax, one of the Big Three credit bureaus. They can also inform you of new entries and inquiries on a quarterly basis through the Sentinel Credit Monitoring Service.