"Reduce your debt" - a quick search of the web will give you thousands of ideas on how and why you should or should not manage money.

If you are sitting a couple of payments behind on rent or mortgage along with the credit card debt rising and the repo on your car seems like a reality, listening to the pros or cons of reducing debt is not something you are interested in hearing.

You need some guidelines to take control of your money. Plus what ever methods you have been using – honestly have not been working. No matter where you are at in your financial journey of climbing out of debt – the steps are very straight forward and simple.

4 Steps to Start Reducing Your Debt

• Access the Situation
• Damage Control
• Find a Way
• Get on Track

Accessing the Situation

It’s time to get a pulse of where you are financially. Sit down with paper and pencil. Now pull out the statement of every bill and write down the amount owed, the interest rate and the monthly payment. Also list if how many months they are behind or past due if at all. List how much is required to bring the account current.

Don’t worry – we’re not mentioning the “B” word yet! Budget!

Many people never take stock of where their money is going.

They take a good look at how much money is coming in and how much is going out! On another sheet of paper write down all of the income you have coming in. Don’t look at the gross amount but the amount you actually bring home or is directly deposited into your bank account.

Now total up all the bills due this month. Subtract the bills from your income. Whatever if anything is left over after bills, deduct your cost for food and other necessary items for the month.

Damage Control

If your bills are not current with your bills or after paying the bills there isn’t enough money left over for food and necessities – something has to give. You’ve run out on money before you ran out of month. It’s time to set priorities!

Start cutting or eliminating anything that is not a necessity. Some examples are calling features on phones, stop eating out, buying coffee in the morning and maybe sell that second car unless it’s needed for work.

Here’s a quick debt reduction or spending priority list if your are behind on bills:

• Groceries and necessary health items
• Rent or Mortgage
• Utilities
• Other bills such as installment loans or credit cards

Notice that basic needs like food, water and shelter come first.

Next step… call your creditors and let them know of your situation. Hiding from them only make matters worse. Inform them you can't pay them. Most importantly - tell them you are actively working on the situation and promise to keep them informed.

It is surprising how many will work with you.

A credit counseling service will do the same thing. You pay them to make arrangements so they can distribute a set amount each month to your bill collectors. Do it yourself!

Find A Way – Work Hard to Learn and Improve Your Money Spending Habits

The simple fact is - you must get your finances in order. Your stress level and sanity will greatly improve. One of two things must happen. Increase income or decrease spending. Adding income may sound simple by getting another job. However, that usually increases expenses also with transportation cost and food. Taxes chew away at the extra money you make.

The best option is to decrease spending and look for cost cutting measures.

Get on Track - Time For The “B” Word - Budget

After you have taken all the steps above it’s time to budget. Make a simple budget that does not take a lots of time and stick to it.