We all live with debt and it has become an accepted part of modern life but if your situation or circumstances change that debt can become a huge problem and you can feel overwhelmed and lost in the debt jungle with no map and feel like there is no way out.

If you were planning an expedition that involved going into the jungle you might get some jungle survival training to make sure you were properly prepared for anything you might face but this is the financial jungle and nobody gets financial survival training before they walk out on the high street with a credit card. There are millions of people who have slipped into problem debt and you should not feel alone and you are not helpless or unable to do anything about it. There are a lot of other people lost and looking for a financial solution just like you.

Anytime we get lost the first thing we must do is get our bearings so we can figure out exactly where we are and which way is the best way to find our way out. So, for our financial problem solving we need to establish exactly where we are in financial terms. This requires a bit of work but it is worthwhile and it will show what our expenses are and where our money is all going.

The first thing to do is to assemble all the paperwork that relates to our monthly expenses. Get your credit card statements and bank statements together. If you have any other regular payments get the paperwork for those too. You want to get a complete picture of what you are paying out each month.

Using a spreadsheet is probably the best way to do this and if you don't have one you can download the OpenOffice package for free at OpenOffice.org It is an excellent office package with a spreadsheet, wordprocessor, database etc. but you can do this with a piece of paper and a calculator. If you are not familiar with spreadsheets it might take you a while to get the hang of it so for now, just get some rough figures down to get a general picture of your financial situation.

Write down what credit cards, loans, mortgage or rent and other repayments you have to make each month. Next to the name write the payments you are making and then next to that the minimum payment you can make each month. I don't generally recommend making minimum payments but if you are in a financial mess it may be helpful to make minimum payments so you avoid additional charges on some debts for non-payment.Add up the columns and write down the totals. This gives you your current monthly repayment total and a possible minimum monthly total repayment.

Now make a list of the regular utility bill and other payments you are making. This would cover regular payments like electricity, gas, insurances and all other regular payments. If you are paying more than you absolutely have too then make a note of the minimum you can pay to stay straight with these bills. Again make a total of the amounts at the bottom.

Now make some guesses about your monthly spend on food and non-essentials like entertainment, sports and hobbies. It is a very good idea to write down everything you spend for a month or two to establish exactly what you are spending but for now we have to make some educated guesses. So make a list of all the things you spend money on day by day and write down the minimum figure that you think you could cut it down to..Now total up these figures like before and you should have three lists and three sets of totals.

Now write down your income. This is usually an easier figure as most of us just have one income. If there are additional amounts for a second job or a partners income add that in here too. You want to end up a list showing all the money coming in to the household and a total so we can compare that with all the money going out in the other lists.

There is an example list below to show what how to layout your lists.

So now we begin to understand where we are. We can compare the total income we get with our total expenses. If the expenses are higher than your income look at the minimum totals you wrote down. Hopefully by making minimum payments you will have enough money to cover all your monthly expenses but that might still not be enough.

Budgeting your money is simple in theory. You need to have the same, or better still more, money coming in as you have going out. If you have less coming in than you spend each month you are you have a big debt problem and are on a path to financial disaster and something has to change.

You can reduce your spending by cutting back on non-essential or discretionary spending and reducing your household running costs by using less electricity and gas. Heat the house a little less, cool the house a little less and generally cut back on anything you can.

You might be able to increase your income in some way. Maybe get a second job or get your partner to get a job. The kids might be able to get a little job to reduce their demands on your monthly salary. Anything you can do to increase your income will help but make sure your family understand and are on board with this idea. It cannot work if they are not helping too.

One option is to try to reduce your expenses by reducing credit card debt by consolidating credit card debt with a consolidation loan.

You may be able to move house and live somewhere cheaper perhaps where you can manage without the expense of running a car.

If you have a spare room you might be able to rent your spare room and take in a lodger and raise some extra money every month that way.

Grow your own vegetables. This isn't an overnight solution but it can help cut costs in the longer term and give your family healthy fresh food.

If all else fails you may have to try renegotiating your debts with the lenders or come to an arrangement whereby you can make payments you will be able to afford. The paperwork you have prepared with all your income and expenses will help you to establish your situation with them and work out what you are able to offer.

The financial jungle is a scary place to be when you lose your way and the debts are mounting up. The important thing is to establish exactly what your situation is and then you can start to work out how to overcome your financial difficulties. Learn how to work out your budget and stick to it. Life may be hard and you may have to go without some things but if you build a sensible plan and stick to it you should eventually find your way out of the debt jungle and find yourself in a wonderful valley full of sunlight and happiness.