minimum payments on everything else, send in as much money as possible to your smallest debt. Once that first debt is satisfied, begin sending the extra money to pay off the second smallest debt. Continue paying off each debt in turn, always applying the amount of money spent on the old bills toward the bill that you are currently trying to eliminate. Step 7 Track your spending carefully over the next month. You may find that you cannot keep certain expenses as low as you had planned, or that you don't need as much money as you thought you would. After the first month, move the numbers around as necessary to keep yourself on a realistic budget. If necessary, tweak the numbers again after the second month, or as needed. Tips Try to hit the ATM only once a week, recommends CNNMoney.com. This can help you keep track of how much money you are using on incidentals, and will also force you to limit the amount you spend on luxuries. If you cannot reconcile your income to your expenses, you may be in need of credit counseling. A credit counselor can help you negotiate with your lenders to temporarily lower credit card payments. You may also be able to defer a payment or two to allow you to catch up. References Resources About the Author Michelle Kulas worked in the health-care field for 10 years, serving as a certified nurses' assistant, dental assistant and dental insurance billing coordinator. Her areas