First, you should make a list of your debts, including the creditor, total amount of the debt, and monthly payment. You can use your credit report to confirm the debts on your list. You need to update your list every few months as the amount of your debt changes. If you are late with your payments, you will have to pay a late fee and your interest rate and finance charges will increase. If you miss a payment, do not wait until the next due date to send your payment and send it as soon as possible. If you cannot afford to pay anything more, at least make the minimum payment. The minimum payment will not result in progress but it will keep your debt from growing. When you miss payments, it gets harder to catch up.
Credit card debt should be repaid first. Credit cards with the highest interest rate usually get priority on repayment. Now you can use your debt list to rank your debts in the order you want to pay them off.
When you have limited funds for repaying debt, focus on keeping your other accounts in good condition. You can pay past due accounts when you can afford to do it. Your creditors will continue collecting on your account as long as you have an outstanding balance. Without access to savings, you would have to go into debt to cover an emergency expense. A small emergency fund will cover little expenses that come up periodically. First, you need to create a small emergency fund in order to build up a reserve of six months of living expenses. You can use a monthly budget to plan your expenses. Your budget helps you have enough money to cover all your expenses each month. You can take early action if it looks like you will not have enough money for your bills next month. A budget also helps you plan to spend any extra money you have left after expenses are covered towards paying off your debt. It is essential that you are persistent and committed to your Free Debt Management.