Sometimes we face financial emergencies so severe we lose our homes or prized possessions, and are left without any money at all. In these circumstances, it is essential to immediately seek at least a temporary solution with either a lawyer or through the creditors. However, we more often find ourselves in a tight financial position where impatient creditors and bill collectors are our main cause for concern. Following are some advice on how to effectively tackle manageable debt before it’s too late.

First things first: face it. Debt does not go away because you refuse to address it. Do not attempt to ignore your growing debt for it will only continue to grow and cause larger problems later on. Accepting the situation for what it is is a vital first step in taking control of your finances.

Whatever you do, don’t underestimate your debt. You shouldn’t ever lose track of the exact amount you owe, however if you must estimate, it is better to overestimate. Go through your latest bill statements to get a more accurate total, or call each company’s customer service department and ask them for these details.

Also, most companies these days either have automated telephone services, websites or even both. You can usually obtain detailed information about your accounts through these services. Arrange the information you obtain in priority sequence, with the most urgent ones on top.

It isn’t unusual to want to deal with accumulated debt by actually not dealing with it – in other words, claiming bankruptcy. Through this method, some are able to wipe the slate clean and start over, although many who take this route still end up having to forfeit certain possessions or are obligated to clear certain balances.

Another option would be to sell off major assets such as a car or house if its monetary value will help to clear all or a large portion of the debt accrued. This is an especially good choice to make if you are having difficulty maintaining payments for the remaining balances on such possessions.

It is not a pleasant decision to make, although as a last resort, withdrawing savings from tax-deferred accounts such as 401Ks can help you regain control of your debts. This would be a better choice than selling a car or home if there is no secure replacement for transportation or housing available. It is necessary to consider whether the assets you use to help cut down debt will subsequently cause further financial problems in the future. With this and the above tips in mind, you can decide how to rectify your mistakes and learn to be more financially responsible.