Right now, a lot of people are dealing with stress from not knowing about their financial future. Perhaps they are already getting the phone calls or the threats in the mail from collection agencies. If you are in that boat, here are some quick tips for coping.

Develop a Budget - and Stick to It

When your money situation is very tight, it is very important to have a budget in place. By budgeting, you can understand what money you have coming in and know where it is going out. You cannot afford to have money falling through the cracks. Make every dime count.


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Take Your Budget to the Bare Bones

Eliminate everything that you do not have to have. Stop extra services and costly activities. Live as simply as you can until you get a better financial standing and some of that debt paid off.

Pay Necessary Bills First

If you have to make a choice between what bills to pay and which ones to leave alone - pay the ones most important first. Of course, this would include rent (or house payment) and electric, and heating. Credit cards - while they will call the most frequently - they can wait a little bit. Pay the minimum if you can.

Work with Creditors

Where possible, be honest with your creditors and let them know that you are in a financial bind, but that you do want to pay it as soon as you can. Oftentimes, they will work with you - but you must let them know.

In the meantime, make sure you stick with your household budget, because this will give you the most money and allow you to pay your creditors quicker than if you had none.