You cannot manage something you cannot measure. But it does not necessarily mean you should have all the details to have a good start. The initial things you should be aware of to re-establish your financial existence is to calculate how much you owe, how much you earn and how much you spend on a given time period.

The end result may shock you but it is better that way before it is too late. Get a pen and paper and start listing all your debts. Include every debt from mortgages, loan payments, insurance, utility bills, to travel expenses. Also, take note how much is the interest rate and minimum monthly payment for each debt. Having all these important information will help you manage your debts and make better decisions.

Obviously, you need a source of income to pay up your debts. If you have extra and part-time jobs I guess it is time for you to take it seriously. At least estimate how much is your expected earnings from each job on a monthly basis. Combine it with your monthly salary from a regular job.

Unfortunately, it is not only debts that you have take care of, at least for now. Your expenses should account for all basic needs such as food, rent, utility expenses, gas, etc. Up to this point, you should already have an approximation of your capability to pay all outstanding debts.

This is the point of no return so brace yourself. Deduct all your expenses from all income and it should give you the remaining amount you can use to pay off your debts. Hopefully it is a positive amount. If it is, then it is a good sign. If not, that is another concern for you to be worried of. It is also possible and recommended to use part of the remaining amount to place in savings. You could use it for future unexpected expenses - one probable reason that caused you incurring debts.

If you reach this point you have a reason to celebrate so do not lose the momentum. Check all details of each debt and prioritize which one to pay first. Be sure to make a commitment to pay regularly. It may take years to reduce and wipe all those debts but it is better than adding more to it.

Getting out from the rat race of debt payment does not require sophisticated strategies. As simple as knowing your total debts, income and expenses can help you find and formulate better options. These practical initial steps of course should be accompanied with other useful information such as payment policies of your creditors, and the different credit options you could avail. Most importantly, you should have the right attitude and mind-set to be victorious in getting out of debt.