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Establishing a debt management program is the first step to getting out of debt. Here’s what your plan needs to include:

Make a List
Painful as it may be, you need to start by listing all of your debt on a single piece of paper. You should list the person or company the money is owed to, the amount that is owed, your monthly minimum payment and the interest rate that applies to the debt. Be sure to include any and all debt. This includes, but is not limited to, credit cards, student loans, personal loans, car loans, mortgages, second mortgages, loans from family and friends and medical bills.

Assess the Situation
Once you have everything listed, you can begin to assess the situation. First, add up your total debt load and your monthly minimums. This will

After you’ve computed these figures, you may find it beneficial to write your list out again, starting with the smallest balances and

Take a Financial Inventory
The next step is to determine your overall financial health. This includes recording your monthly income and your monthly financial obligations (debt repayment, utilities, food, gas, entertainment, etc.).

Also record the amount of money you have left at the end of the month and the balances of all of your accounts.

The Whole Picture
Now that you have a complete picture of your finances, you can begin to form a plan to pay off your debt.