You’ve maxed out all your credit cards, your utility bills are on their final notice, you still haven’t paid your taxes, and you’ve developed an overwhelming anxiety every time your phone rings from all the creditors asking for their money back. You ask yourself how you ended up in this spiral of debt, but can’t figure a way out on your own. Hopefully you will never have to get to that level of desperation, but if you have, or are trying not to go down any further, then it’s time for you to get some help.

Start managing your debt by following these three tips:

#3. Make a record of your income and expenses

Whether you choose to do it on a notebook or a digital spreadsheet or a fancy app, an orderly record of all the money you earn versus what you spend it on helps you monitor your expenses and give you some perspective on what you’re doing wrong.

It will guide you on how to budget for your current and future needs and force you to make decisions on what you need to cut down on to stop bad spending habits. List down any recurring expenses you have (e.g. rent, mortgage, phone bills, utilities, tuition) the foreseeable ‘necessary’ expenses you can account for (e.g. food, transportation) and compare it to your monthly income.

Your foreseeable expenses should be well-below your income, otherwise it may be time to re-evaluate your standard of living.

#2. Prioritize debts which charge the highest interest rates

When you’ve got all sorts of different loans such as student loans, medical bills, credit card debt, mortgage, or promissory notes, it becomes difficult to figure out who you should pay first. Ideally, you should pay the debt which charges the highest interest.

Medical bills would probably be last on your list as these can be disputed or go through your insurance provider first. Student loans may also be bumped down in priority as it is understandably a long-term loan. Credit card bills are usually prioritized due to their high interest rates, but it can vary depending on your situation.

In desperation, you may have borrowed money from a lending institution at an exorbitant interest rate and find yourself saying, “I Can’t Pay My Debt in NYC”, which brings us to our final piece of advice,

#1. Get professional assistance to help manage your debt

It’s okay to seek help for managing your debt and there are plenty of organizations and professionals who can help you manage that debt. You might think that the cost of hiring a professional service will simply add to your debt, but that isn’t true.

They can actually help you stop accumulating debt, arrange payment plans with your creditors, stop the accumulation of interest on your debts, file bankruptcy, and provide other services that will put your finances back in order.

There are “Debt Consolidation Programs” they can introduce you to which allows you to settle your debts within a defined time frame, in an organized and secure way, stopping harassment from creditors and stabilizing your finances.

If you’re feeling overwhelmed with your debt, then it’s time you consulted a professional bankruptcy lawyer to help you stabilize your finances! Don’t let yourself get discouraged with pessimistic views; seek professional help and take the first steps back into financial freedom!