Gas and food prices are on the rise, and as a result people are really trying to stretch every dollar. Often people have to choose between feeding their family or driving to work and making a payment to their credit cards or other debt.

Managing your creditors can help you avoid getting yourself into a financial slump, or worse, filing for bankruptcy. By managing your creditors, you can keep on top of who you owe, and exactly how much, and break down how much you can afford to pay to each creditor.

If you find yourself in the middle of a financial crisis, the first thing you should do is tally up your income. Find out where all of your money is coming from, and see how much you really have to spend each month. Once youave got that down, the next thing you need to do is create a budget.

First write down the necessities: food, electricity, shelter, etc…Subtract the amount you must spend for these from your income and what is left over is the amount available for paying off debt. Each creditor should receive the minimum monthly payment, so subtract that from your total income as well.

Now each debt will be at least kept up-to-date. Identify the smallest debt and use any extra money in your budget to pay this debt off. As soon as this smallest debt is paid in full, begin focusing money on the next smallest debt.

Eventually, youall find that managing your creditors really isnat that hard. With a little planning and calculations, you can easily figure out who you owe what to, and pay each down to zero little by little. Keep on top of your minimum monthly payments, and you wonat be stretching your budget too thin.

For budgeting assisstance look to the internet. There are multiple sites dedicated to budgeting and financial planning. Your local bank may also be able to offer help with your budget or point you to a community agency that offers such services.

Many banks also offer a form of online banking that makes managing your creditors online a snap. See if your bank offers online banking, and you may be able to pay all of your creditors at once, right from your computer. Whatever method you find that works, stick to it - bankruptcy is definitely something you want to avoid!