The ten steps to take in the event of a financial crunch or crisis are as following. Information about each step is noted in the additional sections of this document.

Step 1. Create a Net Worth Statement and a Cash Flow Statement. Most people can get the picture they need in under a half hour.

Step 2. Examine your income.

Step 3. Examine your expenses.

Step 4. If after eliminating your non-essential expenses, you still have more outlay than income, prioritize your debts.

Step 5. Create a payment plan for your unsecured debt.

Step 6. Renegotiate as much of your debt as you can according to your plan -- possibly even negotiating a reduction in the amount due.

Step 7. If you still have a short fall, look for money.

Step 8. As a last resort, you can sell assets, including personal property or perhaps even your residence.

Step 9. If you need help through these steps, or you're facing a crisis, speak with a Bankruptcy Attorney, Financial Planner or Credit Counseling Service.

Step 10. If nothing else works, consider starting a bankruptcy proceeding.

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