When you have debt piling up and you are trying to pay it off, it can get overwhelming.  Who do you owe today?  How much did you pay last week?  What can you pay this week?  It gets very confusing.  You need something to help you stay organized such as some type of debt management software.

What you need to do is get organized on your own even before you start with debt management software.  This will help you to make sure you are charged the least amount in interest, and that you pay it off fast.

How much debt do you have in total?  Look at this number and break it up.  Make sure you don't miss anything, not one credit card or one loan.  Missing debt could be catastrophic to your progress and your credit.

Organize your loans and credit cards from the one with the highest interest rate to the one with the lowest.  Don't worry about the size of the debt. You might worry that you should put the largest debt before the lowest because there's more to pay, but a higher interest rate will cost you more.  You're going to need to pay the highest debt first.

Where does debt management software come in to play?

Once you get organized, you can start planning. Debt management software will help you with this plan and will help you monitor your progress and keep moving.

Figure out how much you are spending and how much income you are making. You can organize this by putting it into a software program or onto a spreadsheet. Include every last item that you spend money on. It could be as big as a mortgage or as small as a pack of gum. Even the small items add up fast. If you buy things on occasion, try to come up with an average number. Figure these amounts on a one-month basis.

When you are adding up your income, only use take-home pay. Don't include money that is removed from your check for taxes, retirement funds, etc. also include small payments from part-time jobs, interest on CDs, or whatever else you make.  If you can spend it, you have to include it.

Debt Management Software

As an individual, you should look for some type of personal finance software such as Quicken, Microsoft Money, mint.com, etc. any of these programs can help you out immensely.

Understand that some are more expensive that others, some are even free, and they all vary in complexity.  What kind of debt management software should you get? It all depends on the complexity of your situation including how many different sources of income you have, how much money you make, how much debt you have, how many different sources of debt you have, what you are spending money on, etc. Try out online software first and if it's not enough, find something better.

Devise a plan to pay off your debt. You want to do more than just manage your debt, you want it gone. Pay off your loans and credit cards with the highest interest rates first. This will ensure that you pay the minimum amount of interest.

Continue to use your debt management software to help with your budget. Set up certain amounts that you are allowed to spend in each category. Break up your expenses into categories such as mortgage or rent, food, entertainment, etc.

Use the software to help you determine if you have used up what you are allowed to spend. Do not go over what you have allotted for yourself in each category. This is important or else you will have enough left over to put towards your debt.

He is ambitious as possible. Set up high savings goals to put as much money each month towards your debt over the minimums as possible. Remember, the more you save and put towards the debt, the faster it will be gone, and the more money you'll save overall.

Once the debt is paid off, continue to use the software to manage your regular finances. Continue to have action money toward savings to save up for an emergency fund of 6 to 8 months, retirement, college funds for kids, a house, a car, vacations, etc.