To deal with a debt problem, you first need to work out how much money you owe. To do this, make a list of all the people and companies you owe money to (your '''creditors'''). You need to collect the following information for each debt:

:*the name and address of the creditor,

:*a copy of the original loan agreement you signed.

It is a good idea to keep the latest letter or statement for each debt together in one place so that you can easily find them if you need them.

==What do I put in my budget?==

The next step is to work out your budget. Your budget lists how much money is coming into your household and how much you need to spend.

'''Income:''' list all the income for your household. Make sure that the amounts are realistic. Include all of your current sources of income:

==What can the Credit Counseling Society do to help me?==

You may wish to contact the Credit Counseling Society for help in developing your plan to pay off the debts. You may also wish to write a letter to your creditors that explains what you have decided. You can contact the Credit Counseling Society online at [http://www.nomoredebts.org www.nomoredebts.org]. They will look at your finances with you, and suggest options. You can call them toll free at 1.888.527.8999. The Society may be able to help you get into a debt repayment program to help you pay off your debt.

===Step 1: Write a short letter to each of your creditors===

You need to provide enough information so that your creditors understand your financial difficulty. Tell your creditors that you would like to pay your debt but cannot do so in full right now. You could offer to pay them an amount you can afford if you have the money to do so. If you have to stop making payments, let your creditors know about your financial situation and that you will tell them when it changes.

=== Step 3: Attach your budget===

Your budget shows the people you owe money to (creditors) what you can afford to pay towards your debts. If a creditor thinks the amount you spend on something is unreasonable, they may ask you to explain why you spend this amount.

=== Step 4: Keep notes===

If you speak with any of your creditors about your situation, write down their name, number, the time of call, and what you discussed. If the person you were talking to suggests a payment plan, ask her or him to send it to you in writing.

==Protecting debtors==

Sometimes the person you owe money to has turned the debt over to a debt collection agency. There are laws that protect debtors from what a debt collector can do. For example, there are strict limits on contacting your family or your employer, and you have a right to tell a collector to stop phoning you altogether.