Developing a Budget:  The first step toward taking control of your financial situation is to do a realistic assessment of how much money comes in and how much money you spend. Start by listing your income from all sources. Then, list your "fixed" expenses-those that are the same each month-such as your mortgage payments or your rent, car payments, or insurance premiums. Next, list the expenses that vary, such as entertainment, recreation, or clothing. Writing down all your expenses-even those that seem insignificant-is a helpful way to track your spending patterns, identify the expenses that are necessary, and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education. 

Your public library has information about budgeting and money management techniques. Low cost budget counseling services that can help you analyze your income and expenses and develop budget and spending plans also are available in most communities. Check your Yellow Pages or contact your local bank or consumer protection office for information about them. In addition, many universities, military bases, credit unions, and housing authorities operate nonprofit counseling programs. 

Contacting Your Creditors: Contact your creditors immediately if you are having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, the creditors have given up on you. 

Dealing with Debt Collectors: The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or at work if the collector knows that your employer doesn't approve of the calls. Collectors may not harass you, make false statements, or use unfair practices when they try to collect a debt. Debt collectors must honor a written request from you to cease further contact.

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Take Charge of Your Credit

Whether you're shopping online, by phone or at the mall, chances are you'll use a credit card for some of your purchases. The Federal Trade Commission offers these tips to keep in mind when you shop.

1. Keep track of your spending.

$ Incidental and impulse purchases add up. Remember credit cards are just like loans -you have to pay what you owe. Owing more than you can repay can damage your credit rating. That can make it hard to finance a car, rent an apartment, get insurance - even get a job.

$ Pay your bill on time, and in full, if possible. If you don't, you'll have to pay finance charges on the unpaid balance - and it takes forever to get caught up if you just pay the minimum.

2. Keep an eye on your card and account number.

$ Never lend your credit card to anyone because you're responsible for paying the bill. Any problems with the bill can damage your credit rating.

$ Don't sign a blank charge slip. Draw a line through blank spaces on charge slips above the total so the amount cannot be changed.

$ Never put your account number on the outside of an envelope or a postcard.

$ Be cautious about disclosing your account number over the phone unless you know you are dealing with a reputable company.

$ Carry only the cards you anticipate using to help prevent loss or theft.

$ If your credit and ATM cards are lost or stolen, report it to the card issuers as quickly as possible. Many companies have toll-free numbers and 24-hour service to deal with such emergencies. Follow up with a letter, including your account number, when you noticed the card was missing, and the date you first reported the loss.

3. Keep good records

$ Save your receipts. Compare them with your monthly bill. Promptly report problems to the company that issued the card. Usually, your statement will provide instructions for disputing a charge.

$ If you order by mail, phone or online, keep copies or printouts with details about the transaction, including any warranties, or return and refund policies if you're not satisfied. You should have the company's name, address, phone number, the date of your order; a copy of the order form you sent to the company or a list of the items ordered and their stock codes, the order confirmation codes and the ad or catalog from which you ordered.