The first step to controlling debt is to list your income and expenses. Look for ways to increase income and cut expenses. Check your spending habits. You can help eliminate credit debt by cutting down on unnecessary expenses. You may also want to consider selling your unwanted items on eBay or Craigslist to generate additional money to pay off some bills. Next, contact your creditors. In many cases your creditors will be willing to negotiate to waive late fees, lower interest rates, and lower your monthly payments. Your creditors will be more willing to accept a modified payment plan rather than receive no payment at all. Prioritize Your Spending Some months, you may not be able to pay all of your bills. Decide beforehand which expenses are top priority and must be paid and which ones will have to wait until you can acquire more cash. If you cannot pay your mortgage, consider selling your home and buying down into a less expensive one. If you are having trouble paying rent, consider moving into a lower cost rental unit. If you are behind in your car payment, consider trading down to a lower-cost model. Debt Consolidation Loans You may be able to lower the cost of your debts through a debt consolidation loan. These types of loans usually carry a lower interest rate than credit cards or other loans. Seeking Professional Help If you cannot work out a plan with your mortgage lender, contact a housing counseling agency. Some housing counselors only work with homeowners with FHA mortgages, while others offer their services to all home owners in trouble. You can find housing counseling agencies through your local HUD office or www.HUD.gov. Credit Counseling and Debt Management Plans Credit Counseling agencies can work with you to eliminate credit debt. They can help you establish a realistic budget and stick to it. There are many non-profit credit counseling agencies that can negotiate with creditors on your behalf and create a Debt Management Plan. If you are trying to negotiate with your creditors and getting nowhere, this may be a viable option for you to help eliminate credit debt. Bankruptcy It is highly recommended that you seek the services of an attorney if you are considering filing bankruptcy. Bankruptcy is a legal proceeding in which a successful bankruptcy filer receives a discharge. A discharge is a court order that says they don't have to repay certain debts. Bankruptcy stays on your credit report for 10 years. Debt Relief Scam Warnings There are many companies that offer "debt relief" services online. Some are legitimate, and some are scams. Here's what to look out for: Beware of companies that suggest that you stop making payments to your creditors. Avoid paying high up-front fees. Eliminate Credit Debt It takes time to accumulate debt and therefore it will take time to eliminate credit debt. Patience, discipline, and communication with creditors are the keys to getting yourself on the right track to eliminate credit debt.