Debt stress can sneak up on you. One day it’s a late bill, the next it’s a drawer full of envelopes you haven’t opened, account logins you’ve forgotten and a knot in your chest that shows up every time your phone buzzes.
The good news? You don’t have to fix everything today. You just need a clear place to start, a way to account for all your outstanding bills and a quiet room to sit down and figure things out. Here’s how to start getting your finances organized:
Step 1: Find the Pieces Before You Try to Solve the Puzzle
This is your “no judgment” step. Don’t think ahead about the cost or process of paying stuff off: This step is to get clarity about where you actually stand.
- Grab all your unopened mail
- Search your email (spam included) for account notices or overdue warnings
- Scroll through your phone for payment screenshots or text reminders
- Log in and verify your balances on your credit card and loan accounts
Write down who the lender is, what kind of debt it is (credit card, medical, payday, etc.), the balance and any upcoming due dates. No need for a plan of attack yet — just bring it all into the light so you can understand the complete picture.
Step 2: Categorize
Once everything’s out in the open, group things up. Collect your bills and add them to different buckets, like:
- Credit cards
- Medical bills
- Loans (personal, payday, auto)
- Secured debt (mortgage, car payments)
- Collections
Put a star next to anything that feels especially urgent. That doesn’t mean you need to handle it today—it just helps you know where your attention might need to go first.
Step 3: Fill in the Blanks
You’ve probably uncovered a few mystery accounts or missing amounts. That’s normal, so don’t stress just yet. Here’s how to verify accounts opened in your name:
- Go to AnnualCreditReport.com and grab your free credit report. It’ll list most of the debts in your name, even ones you may have forgotten.
- Call any lenders you’re unsure about. Ask for your current balance, payment status or any past-due details.
- Apps like NerdWallet or Empower can link to your accounts and help gather everything in one spot.
Once you’ve got the info, add it to the list you’ve got going. Now you know what you owe, where you owe it and when it’s due. That’s some solid progress!
Step 4: Step Back and Look at the Bigger Picture
You’ve got most of the details down — now it’s time to look at how you’ve been spending your money. Ask yourself:
- Are you using credit cards for groceries or gas because your paycheck doesn’t stretch far enough?
- Do payday or personal loans pop up again and again when things get tight?
- Are there a bunch of medical bills that slipped through the cracks during a hard season?
The point here is not to judge, but to observe. Punishing yourself or berating yourself about past decisions won’t help you practice better habits going forward. Being real — and having a source of truth to turn to — can help you break the bigger problem down into bite-sized chunks.
Step 5: Choose One Simple Next Step
When you finally see the full picture, it’s tempting to try and tackle everything at once. But hang on — start small, and build up your appetite. Small successes early on will keep you more engaged and motivated!
Pick One Thing You Can Do Today:
- Call the lender that worries you the most.
- Make one small payment, even if it’s just the minimum.
- Add a reminder to your phone for the next due date.
In a tennis game, you have to serve the ball to win the match. This first action is that opening serve. Then, it’s one play at a time, until the game is up. The difference here is that, by following small steps til payoff, you stand to win — big-time.
Step 6: If You’re Still Spinning, Ask for Help
You are not supposed to do this alone.
- A debt consolidation program can combine eligible debts totalling over $10,000 into one affordable monthly payment, and could help you become debt-free in as little as 24–48 months.
- A financial coach can help you prioritize and move forward without judgment.
- A credit counselor can help you build a repayment plan. You can start with an organization like the National Foundation for Credit Counseling (NFCC), which connects people with certified nonprofit credit counselors.
You’ve already done something important: You stopped ignoring the problem, and that counts for a lot.
Now it’s just about taking the next right step. There’s no perfect path here — only progress. And by reading this article, you’re already in better shape than before: So keep going!