If you feel like your debt is overwhelming you, you are sinking deeper and deeper into a hole, and your credit score is in the pit, don’t despair. There is hope. You need to assess the situation honestly, then take some steps to correct it. The steps won’t be easy, but it can be done. Many have done it before you and are glad they did.

You can do this yourself. You don’t have to pay someone else. Don’t bother with claims that a debt consolidation loan is the only way out. With those programs, you may even end up owing more and have nothing to show for it.

Here’s what you can do for yourself:

1) The first thing is to admit the situation and tackle it head on. It will not go away if you ignore it. It’ll only get worse.

2) Stop overspending. Spend what you need to spend and no more. If you can live without it – do.

3) Generate more income. Get a part time job. This can even be very part time. But put ALL that money toward paying off your debts. Don’t be tempted to spend it.

4) Stop using credit cards. If you don’t have the money now, don’t buy it.

5) Make a budget and stick to it.

Here are some suggestions of ways to spend less:

1) Make small cuts in your expenses for starters. Putting the axe to your spending style may be too much to handle right off. You may get discouraged. Go out to eat once a week instead of twice. When you do go out, find a less expensive place than you are used to.

2) Carpool or take the bus.

3) Shop at thrift stores. You may be amazed at the bargains you can find there.

4 ) Buy store brand products.

5) Buy in bulk. You can save a lot of money by doing that, especially on spices.

6) Eliminate junk food. It’s bad for you, anyway.

7) If you no longer read a magazine, cancel the subscription.

Put off buying new clothes.

9) Don’t go to the movies. Rather wait for it to come out on DVD.

10) Trade in that gas guzzler for something more economical.

Here are suggestions on generating more income:

If your job does not pay enough or you’re not being used to your potential, it’s time to consider looking for another job. Sure, that is hard and may be scary. But what do you have to loose? You can also get a second job, as mentioned above.

Manage your credit cards:

Again, that’s easy to say, but how do you do it? The best thing to do, of course, is to not use them at all. If that doesn’t work for you, then go ahead and use them, but the first month you find that you can’t pay the bill in full, cut up the cards and throw them away.

Budget your money:

The more debt you have, the tighter you have to make your budget. First, list all your income – your salary or wages, tips, alimony, child support, etc. Then list all your expenses – mortgage or rent, groceries, auto insurance, gas, utilities, gifts, clothes, entertainment, etc. Separate the essential items form the non-essential. To figure out your expenses, you may need to write down everything for a few months. Also, if a bill does not come every month, like property taxes, divide it by the number of months it covers.

Compare your income and your expenses. Then make adjustments if you need to (and you probably will). There are only two ways to make a budget balance – earn more or spend less.