3. Rank all your debts in order of importance to you. We are in a nation where credit is important. Which credit card(s) is most important to you? Which cards can you live without?

4. Make sure your spouse or significant other is with you through this entire exercise. You absolutely need a joint effort and you cannot right the ship if one is rowing and the other is adding water to the vessel.

5. Make a budget as it is today. This budget will show a deficit, or you are not in trouble. Once you have your budget you can see where the problems lie and you know exactly what it will take to make it work.

Next prepare a paper that you will send to your lender, if that is your most important asset and probably the biggest problem. After you talk with the lender send them in writing your budget and let them see what they need to do to keep you going. This isn't a major production but it will work as well as if you had a CPA prepare it for you. Lenders do not want your house back. Lenders want you to stay and will work with you.

Lastly once your house payment is under control take on each and every credit card company and steadfastly refuse to pay unconscionable interest. If they won't budge stop using that card. You cannot afford interest in the high teens or even higher. Remember if everyone said no to the ridiculous interest they are charging they would come down quickly.

In closing, you need one thing more than anything else. This is the missing ingredient in your life or you wouldn't be in this horrible financial position. RESERVES! I have been writing about them for years and for years people have ignored the advice and now they have suffered. As you recover financially it is time to add reserves to your equation to insure this won't ever happen again. I, for one, believe you can come back better than you were and that come back begins today. Good Luck!