Are you starting to worry about how much debt you have? With costs for fuel and groceries rising dramatically, it’s starting to look like we’re headed for tough times. When the price of necessities rises unexpectedly, it can push many people to the brink if financial crisis. But don’t despair! You can improve your situation with a little discipline and some can-do attitude.

The steps you need to take depend on your personal situation. How much debt do you have? Are you really disciplined, or do you need some help? How are things looking for the future? Your answers to these questions will guide you toward various options, like setting up a budget, getting some credit counseling, consolidating your debts, or possibly debt negotiation. But your overriding principle should be to reduce the amount of debt you have so that more money will be available to pay for monthly necessities.

Budgets probably aren’t much fun for you, otherwise you would already have one. There’s nothing mystical about budgeting. You simply look at how much money you bring in, and how much you spend. A popular financial adviser puts it this way: you must spend every dollar on paper before you spend it in real life. That’s what your budget does. You take your total income and portion out among monthly obligations. It’s important to pay absolute necessities first–shelter, food, utilities.

After the basics are covered, you can prioritize the rest of your monthly spending. It’s possible there won’t be enough income to cover everything. You’ll have to make some adjustments in what you pay for non-essentials. It may involve changing some lifestyle choices or negotiating with creditors. But don’t neglect your essentials.

Your local library or bookstore has information on money management and budgeting techniques. Even if you find the idea stressful or distasteful, you can get rid of the stress by dealing with the issue. Software programs that handle budgeting and track your spending can make quick work of this process.

If you can’t pay your creditors everything you owe them, contact them immediately. Candidly explain your situation and tell them what you are able to do. In most cases, they will workout a modified plan to reduce your payments and interest for a set period of time. The sooner you begin working with them, the easier it will be and the more options you will have.