I know how it goes: you sit down for a meal and the phone rings. Which creditor is it this time? You are the epidemy of "so-much-of-the-month-left-at-the-end-of-the-money" and the "living-paycheck-to-paycheck". Trust me, I've been there and got the T-shirt. Not proud of it, and at times lately we're still struggling with that--hence the reason I posted a "Please Donate" button on my blogs.
Are you so overwhelmed with debt that you don't know where to start?
Dave Ramsey speaks on this often, and he mentions what he calls the four corners of your financial foundation. This is about priorities--something my wife also reminds me of. Would you let your kids starve but need to stay current on your Discover or Citi or Chase or American Express bill? No way! If you are unable to do anything else, it is recommended that these four areas be your focus. And what money is left--if there is any--gets allocated to the debts.
The four corners are:
Once these four areas are met, you will also start to feel better because it's idiotic to stay current on your credit cards when your house is close to foreclosure. Set your priorities.
**Please keep in mind, the advice given above is only my opinion, and your situation may be different so it would be adviseable to seek legal counsel**