Even when we’re making wise choices with our money we run the risk of suffering a financial problem that could leave us with more bills than earnings. Many things such as medical emergencies or car accidents can make big dents in our bank accounts if we are not properly prepared, and it can be really difficult to affront these kinds of situations when we have countless bills to cover.

If you are feeling like everything is out of your control you can end up panicked and overwhelmed and that won’t help you at all. The first thing you should do to evade those feelings is to take a look at your current situation, accept it and then find all your bills and check how much you owe and then compare it with your current earnings. Doing this will help you take a better look of where are you standing right now and will help with your next decisions.

Now you must find what things in your life make you spend more money than you should. You must stop doing any these things:

• Eating outside your home
• Buying items you don’t need
• Going to entertainment places where you could waste money

Doing any of these actions can make your situation worse than it is at the moment. You also can ask for fewer channels on your cable, less minutes on your cellphone plan, or ask for a slower but cheaper internet connection, these are all actions that can make your bills cheaper and more manageable.

Now that you have reduced the amount of money you spend each month, look at how you can make your budget bigger, like selling your unused items online, taking a side-job, or doing odd jobs. Being able to minimize your gains and maximize your funds will give more ways to deal with your bills.

Giving priority to your important bills is a must, if you don’t pay your rent, for example, you could lose your home and end up in the streets and that definitely won’t make your situation better. You must pay first the bills that can make you lose significant resources if they aren’t paid, like your mortgage or your insurance. Canceling your subscription to things like newsletter, magazines, cable, or cellphones plans can help you pay your important bills, as you won’t have to waste money on things you can live without.

You can call your debt collectors to tell them about your current situation, they can help you pay your debs in the manner of personalized payment plans that you can tackle. If you’re being harassed by your debts collectors then you should be aware of your rights and the things that they are and aren’t able to do and what can you do about their actions.

If you want further help you can call your bank and ask for a credit counselor that can offer you his assistance, education and advise to help you manage your credit. Since he works at the bank you are using he will be more aware of your current financial situation, thus increasing the effectiveness of his counsel.