If you plan to produce your own type of debt reduction worksheet or debt reduction spreadsheet if you will, an important place to start is your total monthly income after the taxes have been deducted.  You will then list your various expenses in a column right next to your net income and these will include utilities bills, mortgage payments, fuel expenses, insurance premiums, school fees, grocery expenses, Internet costs, day-care costs, telephone bills, cable television charges, restaurant expenses and others.  In the next column, you will then indicate the payments that you make for different debts, including personal loans, car loans, store cards, payday loans, credit cards and other such kinds of loans.  Getting the totals of your expenses and your debt payments will provide you with a good idea of how serious your money problem is.  You can easily see that you are in serious trouble if your total expenses are larger than your net income.

After producing your initial debt reduction worksheet, it may then be a good idea to focus your attention on the different things that are found in your home. Maybe, you have a gigantic TV set, a luxury automobile or other assets that may even have been partially responsible for the situation that you are now in.  It may be advisable to dispose of the big television and buy a smaller one or trade in your car for a less expensive model.  By selling several of your assets, you may be able to substantially reduce your monthly debt payments and this will make it much easier for you to get out of debt.  Think of the interest payments that you will be able to save if you start selling these unnecessary items. 

Another way to reduce the total debt repayments indicated on your debt reduction worksheet is to contact your creditors and request for a reduction of charges.  Here, you will explain to them your financial condition and ask for a reduction in interest rates, penalties and other charges.  You can also attempt to obtain debt consolidation loan that will drastically bring down the amount of interest for your loans.  You may also need to find other sources of income to increase your capacity to repay the loans. For more interesting tidbits such as these stop by http://TheDebtAnalyst.com