Do you know how much money you owe? Are creditors calling you? Do you only pay the minimum payment on your credit cards? Do you wish you could find a way to get out of debt?

If you answered yes to one or more of these questions, you may be headed for bankruptcy. Many people don't have any idea how much debt they owe. Make this priority one. List what you owe, and what you are paying each month.

Are creditors calling? Are you avoiding them? One of the biggest mistakes you can make is not contacting your creditors to discuss and develop a plan for settling your debts. Face them. Be honest. Tell them that you are having trouble paying your debts. They may be willing to come up with a plan to help you pay, settle or reduce the principal amount and possibly the interest on the debt as well.

Pay off your smallest debts first. Then put the amount you were paying those debts toward your high interest credit cards. For example, if you pay $100 per month to your credit card, and were paying $50 to pay off the smaller debt, you should now be paying $150 per month to the high interest credit card per month. After that, add that $150 payment to the next debt on your list. This will help you to get out of debt years faster than paying a little on each one every month. Never pay just the minimum required payment on a credit card. This can cause you to pay for the rest of your life.

Get professional advice. If you are living from paycheck to paycheck, are behind on any revolving payments like credit cards, you should consider getting immediate advice from a financial advisor. They will help you to create a budget, identify and modify spending habits, and make you aware of the options available to you. Many people wait too long to get professional help, and they reach a point where bankruptcy is the only option left. Don't let this happen to you.

The first step is always the hardest, but keep working at it, every day, and you will soon see progress and finally get out of debt.

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