Content Overview 
- Summary
- Step 1. Create a Net Worth Statement and a Cash Flow Statement.
- 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
- Step 7. If you still have a short fall, look for money including from loans against assets. Consider bartering
- Step 8. As a last resort, sell assets - perhaps even your residence.
- Step 9. If you need help through these steps, consult with a professional.
- Step 10. If nothing else works, consider starting a bankruptcy proceeding.
Ten Steps To Consider In The Event Of A Financial Crunch Or Crisis
Step 6. Renegotiate as much of your debt as you can according to your plan
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Consider negotiating a reduction in the amount due. See: How To Negotiate With Creditors
When it comes to credit card companies, if you saved the offers for new credit cards you likely received in the mail, you can use the rates offered in those mailers to help negotiate against your current credit card companies.
If you make an agreement with creditors, keep to whatever you agree. If something unforeseeable happens and you cannot keep your agreements, let your creditors know before you skip a payment.
If you need help negotiating debt, consider using a Credit Counseling Service, a lawyer or a financial planner. If you do use a credit counseling service, watch for non-profit scams. There are good non-profits - but there are also some that have been known to scam. For informaiton, see: Credit Counseling Service 101
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